CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Trade of the Week: long Dow Jones Industrial Average

In this week’s Trade of the Week, IG market analyst Axel Rudolph FSTA looks to go long the DJIA with a stop-loss at 30,500 and an upside target at 33,000. He also looks at last week’s trade, which was short the DJIA.

(Video transcript)

Hello and welcome to this week's Trade of the Week for the week beginning Monday 18th July.

Last week's trade: short DJIA

Last week's Trade of the Week was to go short the Dow Jones Industrial Average, and we did so, on this daily chart, at 31,185.

We had a small risk because we put our stop-loss on this short position above the previous high, which was at 31,510. And, our downside target was just above the previous lows at 30,400. It took a few days for us to be profitable but we made 785 points on going short on the Dow last week.

This week's trade: long DJIA

Now, this week, what has happened is that we've had a bullish reversal last Friday, and today we're breaking through the three-month downtrend line. And we've also taken out, or are in the process of taking out, the previous high from earlier in July at 31,509.

So, therefore, our Trade of the Week, from a technical perspective because we believe that the market has based and that the summer rally is about to start, is to go long the Dow Jones Industrial Average at 31,300.

So, on a small retracement lower because this week there's probably going to still be a lot of volatility and we've opened a gap here between Friday's high and today's low. So it's likely that this gap will be closed in the course of the week and we would just like to buy it just in that gap here.

So going long at 31,300 with a stop-loss at 30,500, just below Friday's low, and an upside target of around 33,000, where the highs were made back in late May and early June.

So today's Trade of the Week is to go long the Dow Jones Industrial Average at 31,300 with a stop-loss at 30,500 and an upside target at 33,000.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.