DJIA is reaching a strong upside resistance • Edge of trading a place for traders

Earlier in the week, the DJIA saw gains, rising 0.6% on Thursday after Trump announced a trade deal with the U.K., which included tariff cuts on British autos, steel, and aluminum. However, trade war concerns, inflation, and high interest rates have pressured the index, with a year-to-date decline of 2.76%. Futures tied to the DJIA showed modest movement, with a 0.03% uptick noted late Friday.

Individual stock performances within the DJIA included Chevron (CVX), leading gains early Friday, up 1.4%, while Home Depot (HD) lagged. Posts on X reflected mixed sentiment, with some highlighting Thursday’s gains (+0.62%) driven by trade optimism, while others noted ongoing uncertainty ahead of the Federal Open Market Committee (FOMC) meeting. The market’s focus remains on trade developments and their economic implications.

DJIA possibly reached the peak of a long-term five-wave pattern by touching 45150, as we can see on the monthly chart. The 36800 bounce contained a pullback from there. This bounce does not mean that the downside reversal is over. Learn to Trade Stocks profitably.

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The DJIA weekly chart is revealing a falling channel with upside resistance of 41870. A break above this resistance is needed for an upside continuation to test a previous high of 45000. Rejection here or an overthrow with a break below 41800 will give us a good short trade entry. The following weeks and a price action above or below this level indicated are crucial for a long or a short trade.

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How can we trade this?

It is a fact that a strong upside resistance for Q2 2025 is 41850, and if we get a confirmation of a reversal higher and a sustained extension above it, we could see a strong upside continuation to 45000. You can try with a short-trade entry with SL above 42200. If the SL will be taken reverse to a long trade entry. For inquiries about account management or copy trading, please write to [email protected] or contact me on WhatsApp or Live chat.

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How can we trade this?

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