DJ comprises of 30 prominent companies in the stock market. DJ 30, looks bullish fundamentally as well because, after the lockdowns, economy is restarting and more volume pouring in the stock market.

Market structure: Market structure on DJ 30 is super bullish. The structure has formed HH and HL. Right now, market has slightly tapped the support level. Buying at this level can be risky as we don’t see any confluence. The support at $34,700 is acute, where more confluences are in formation.

Retracements: The first retracement level is at 50%, where the price is $34,625. The golden area stands far below at $34,425. The golden area is at the 75-78.6% zone. 
The 50% retracement price of $34,625 confluences with the daily support region. This good be the first option to go for longs till $34,900.

Trendline: The market structure is bullish but the ascending trendline, has been breached earlier. Following the trendline, we also need to look after the market structure which is still bullish. Unless, the market falls below $34600, selling is risky given the structure.

EMA: Both EMA’s are bullish, currently, being below the current market prices. We need to wait for an EMA 50 retest in order to validate the long setup. We anticipate market confluence with the EMA 50 at the support and retracement level of 50%. It is to note, EMA 50 after being broken, has not been tested yet. Hence, market is going to test this EMA 50. Till the market tests this EMA, we will not jump on the Bull Run.

RSI/CCI: Both the oscillators are on the bullish lengths. RSI being at 55 and CCI being at 75, respectively. With the current state of both the oscillators, we can assess that DJ30 does have room upwards, until, the overbought conditions are tapped either on RSI or CCI.

At the mentioned trading plan, market has 2 confluences of support and retracement levels. We look for minimal of 2 confirmations before trading any setup. Ideally, we do look for 2+ confirmations. But given the supper bullish trend on DJ30, the highlighted region can prove to be logical for long positions.

Super bullish on DJ 30

Jul 14 2021