DOW JONES broke its 1D MA200 but may consolidate for a while

Dow Jones (DJI) broke today above its 1D MA200 (orange trend-line) for the first time since February 16. However, as the Ukraine-Russia war isn't yet over, this rally will seek reassurances from this week's high impact macro-economic reports, namely Wednesday's GDP and Friday's Nonfarm Payrolls.

If the index closes a 1D candle above Resistance 1 (35150) then the next target will be Resistance 2 (35875). If not and the price shoots back below the 1D MA200, look for a multi-week consolidation within the 1D MA200 and the 1D MA50 (blue trend-line), which will be a good scalping opportunity.

The new long-term buy Zone is around the 0.382 Fibonacci retracement level but a closing below it should seek support on the bottom's Higher Lows trend-line. However I have to give the advantage to the long-term bullish case, as the RSI just broke above a multi-month Lower Highs trend-line, which is an indication of a long-term rally for 2022.



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