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.
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