Nathan BatchelorThe Dow Jones Industrial average looks set for a large directional move, after bulls rallied price towards the 24,840 level earlier this week.
US 30 price analysis suggests that bulls could move the index back towards the best levels of 2020 if the 24,880 level is breached.
US 30 medium-term price trend
An improvement in risk sentiment and a commitment of more monetary support from the Federal Reserve is helping the overall bid tone in the Dow Jones Industrial Average.
US 30 technical analysis shows that a bullish inverted head-and-shoulders pattern has formed with sizeable upside potential.
If buyers manage to ignite the bullish pattern and rally price past the neckline, the index could soar towards the 28,000 level.
The Dow Jones Industrial Index’s 200-day moving average, around the 26,640 level, is likely to act as strong resistance before the 28,000 level.
Watch out for more upside in the index if bulls can rally price past the current monthly high.
Coronavirus affects markets
US 30 short-term price trend
US 30 technical analysis shows that the index is technically bullish over the short term while the price trades above 23,550.
The four-hour time frame currently shows that bullish MACD price divergence is present until the 28,000 level.
If the MACD price divergence is completely reversed, it would mean that the index would have recovered around 10,000 points since the March 2020 low.
In the near-term, watch out for dip buyers to keep the index well supported on pullbacks towards the 23,600 to 23,800 area.
US 30 technical summary
US 30 analysis shows that the index may be preparing for a major rally towards the 28,000 level. Gains above the 24,880 level are expected to accelerate technical buying pressure.
