ChartPros Named Best Trading System to Learn for Supplemental Income in 2024!

February 2 Chart of the Day - The SPDR Dow Jones Industrial Average ETF Trust

If you've been following our Chart of the Day posts and have benefited from one or more of them we ask that you consider participating our NEW Pay It Forward - Traders Helping Traders program.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) seeks to provide investment results that correspond generally to the price and yield performance of the Dow Jones Industrial Average.

If ya haven't noticed lately, the chart has been trading at all time highs (ATH) and we repeatedly get asked "how much higher can this market go?"

Quite simply the answer is "as high as it wants..."

All kidding aside, we set out using price action technical analysis to see if we could determine potential upside targets for price.  These are not predictions, rather they are mathematically based projected target levels.  Levels especially helpful for investors and traders who have been riding the uptrend and curious of where price could be going.

If you're interested in learning more about trading and managing risk with regards to any chart that is at or near ATHs then don't miss our Trading All Time Highs Market Insights Briefing replay.

On the monthly chart we can see that price has already surpassed some but not all Fibonacci upside completion targets.  Additionally, there is a nearly 25 year old trend line up above that price could be heading towards.

You see, when charting ATH the only two reliable tools that can be use are trend and Fibonacci.  Not hunches, thoughts, or opinions.

On the weekly chart we've layered in additional support/resistance as well as Fibonacci in the event price were to pull back.

But most interestingly, on the daily chart we can see that price actually made new ATHs today and inching closer and closer to that previously mentioned trend line.

So, if you happen to get into a casual conversation over the weekend and someone asks you about the markets and how high can they go...

Now you have the answer - As High As They Want!

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections.

Have a chart you'd like to see featured? 

Send requests at https://stockchartpros.com/community/contact

Would you like charts like this delivered directly to you every day?  ChartPros Trade Room is offering an OPEN HOUSE 7-day free trial at this link.

 

Leave a comment

Name .
.
Message .

Please note, comments must be approved before they are published