Trade of the week: long Dow
Since last week’s low in the Dow Jones Industrial Average was made close to key support, we expect at least a short-term recovery in the index to be seen over the coming days.
We would thus wish to go long the Dow around the 38,000 mark with a stop loss just below last week’s low at 37,235 and an upside target around the 39,000 level.
(AI Video Summary)
Previous DAX 40 trading outcome
This week's "Trade of the week" centers on a trading strategy involving the DAX 40 and the Dow Jones. Initially, the video reflects on a previously stopped DAX 40 long position, justified by a bullish hammer chart formation and a rebound of 150 points, subsequently eliminated. Despite temptation, no new position on DAX 40 is pursued due to an unattractive risk-reward ratio.
This week's trading opportunity
Highlighting recent support and resistance breakthroughs, the recommendation leans towards going long on the Dow Jones following a minor retracement to around the 38,000 mark, with a stop loss just below last week’s low at 37,235 and an upside target around the 39,000 level for favorable risk-reward outcomes.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.
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