WallStreet: Intraday Record High Ahead of Close as Week Starts Bullish for Dow Jones Industrial Average (DJIA)
The daily candle chart below shows the short term price history of WallStreet - a contract for difference (CFD) which aims to track the underlying Dow Jones Industrial Average (DJIA) index. Today WallStreet is trading near 18301 around time of publication - and just off an all-time record high (intra-day) for the underlying index -and is less than 10 minutes before the session close this Monday in New York.
In early May - last time WallStreet was reviewed in Ideas You Can Trade - the bullish support line of the up-channel (see yellow channel on chart below) was tested again, and since then the index recovered towards current levels.
Today WallStreet pushed to a new intra-day high and is about to close around that level - setting an new all time high - and starting the week on a very bullish note.
If support above 18000 is maintained (and up the current bullish line - see blue trend line on chart below), we should see fresh highs continue, whereas if support is lost around current levels - a sharp drop should follow. For now, the trend seems very bullish.
Below are examples of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 18326 with a Limit to take profit @ 18427 and a stop-loss @ 18244 Risk/Reward Summary: Limit risk = 101 points profit / (-82) Stop-loss risk = Gain to Loss ratio = 1.23
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 17999 with a Limit to take profit @ 17849 and a stop-loss @ 18150 Risk/Reward Summary: Limit risk = 150 points profit / (-150) Stop-loss risk = Gain to Loss Ratio = 1.00
Short term chart (daily candles):