Trade of the week: long Dow Jones Industrial Average
Since the Dow bounced off its mid-December support zone on the first trading day of the year and remains within a long-term uptrend, we would like to go long with a stop loss below the 19 December low at 47,785 and an upside target just below the psychological 50,000 mark at 49,930.
(Partial video transcript)
This week's trading opportunity
This week's "Trade of the week" is to go long the Dow Jones Industrial Average. If you look at the chart in the video, you can see that we remain within a very clear uptrend. And in 2025, we had a very good year for the Dow Jones Industrial Average and this is likely to continue in 2026, according to the charts.
Because what we see is a move back down towards support on the 2nd February. And you can see that we bounced off this support area going back to the 19th and 18th December. And since then we are heading back up again. So, basically, as long as we stay above the 2nd January low and also the low seen on the 19th December, which comes in at around 47,787, we will also remain above this uptrend line here.
And, the odds are that this upward momentum is more likely to continue than not. So for that reason, I wouldn't be surprised if we were to make new record highs. And if that were to happen as expected, then the Dow Jones Industrial Average will probably head towards a psychological number. What do I mean by that? The 50,000 mark. So I wouldn't be surprised that the uptrend were to continue and then head towards 50,000.
This week's trade in summary
This week's "Trade of the week" is to go long the Dow Jones Industrial Average with a stop-loss below the 19th December low at 47,785, and an upside target just below the psychological 50,000 mark at 49,930.
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