When reading financial headlines one could easily think the markets are selling off, we’re in a in severe downtrend where panic is just about to hit the main street. It’s really hard to find anything positive, and even if we get to read something that could sound a bit optimistic it’s accompanied by a word of caution, caution ahead of the next recession. Everyone’s obsessed about it.
I don’t know about you guys, but I like to stay open minded and being optimistic is a viable option too. It helps spending some time with family and friends during the Summer, and having the Adriatic sea at our fingertips is just a bonus.
Since the beginning of the year we’ve been bullish the stocks (Is it over?), bitcoin (Are cryptos trying to bottom?) as well as gold (Will gold bugs finally have their day?). It’s a ‘risk on’ environment, you know. However, is that about to change?
Let’s take a look at the Dow Jones Industrial Average $DJI index. Here’s a daily chart.
We’re back at the crime scene, where we’ve been the past 3 (or 4, depending on the count) times. Should the price break above 27,000 and stay there, the theme could become even more bullish. In this case upside targets could become as high as 30,000 (and more over time).
This may happen this week already, but I’d expect a bit more consolidation at around current levels. It’s quite likely the market will chop around before it decides to breakout. While we’re in the upper part of the range we need to stay away from click bait, the R word, news. Quadruple tops are very very rare. Maybe this is one of them, but the likelihood does not favor this scenario.
Use this Summer to spend time with family and friends, and to find the best individual stock ideas. Do you need help with that? Get in touch.