INDU – The Nov 2022 downtrend breakout of its Jan 2022 primary downtrend during early Nov 2022 coupled with a golden cross buy signal during mid-Dec 2022 hints at an intermediate-term trend reveal.
A successful test of initial support near 32,368-32,541 (the extension of the downtrend breakout and 200-day ma) reinforces an intermediate-term trend reversal.
Also, for the past 8 months, a potential head/shoulders bottom has developed. A breakout above neckline resistance at 34,118-34,712 (Jun, Aug, Dec 2022 and the Jan 2023 highs) suggests 6,051 points or a retest of the 1/5/22 all-time high (36,952.65) and above this 40,763.62 (h/s bottom breakout projection).
Initial support remains 32,273-32,582 (Feb/Dec 2022 lows, 200-day ma, 9/12/22 high, and the extension of Jan 2022 downtrend). Below this warns of a decline to secondary support at 31,727 (11/13/22 low), 30,636 (May 2022 low), 29,653 (Jun 2022 low), and 28,660.94 (10/13/22 reaction low and the head).
RRG study shows improvements with 21 INDU stocks in the Leading/Improving quadrants. 9 INDU stocks are in the Weakening/Lagging quadrants.
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