{"id":61058,"date":"2025-06-10T08:02:09","date_gmt":"2025-06-10T06:02:09","guid":{"rendered":"https:\/\/www.captrader.com\/?post_type=analyse&p=61058"},"modified":"2025-06-10T08:02:10","modified_gmt":"2025-06-10T06:02:10","slug":"dow-jones-before-breakout","status":"publish","type":"analyse","link":"https:\/\/www.captrader.com\/en\/analyse\/dow-jones-vor-breakout\/","title":{"rendered":"Dow Jones before breakout"},"content":{"rendered":"

Dear trader, dear stock market friends.<\/p>\n\n\n\n

The Dow Jones turned green last week in terms of YTD performance and is up 0.51% since the beginning of the year. However, it is still around 2200 points or 5% short of its all-time high from the end of January. Nevertheless, the temporary and rapid price decline in April seems to have been overcome and sentiment has brightened considerably. The Dow ended the first week of June with a gain of 493 points or 1.2% compared to the closing price on May 30. The robust US labor market report on Friday accounted for the lion's share of the rise.<\/p>\n\n\n\n

Technical outlook<\/h2>\n\n\n\n

Over the past four weeks, the Dow Jones has mainly moved sideways in a price range between 41,700 and 42,800 points. On the downside, there is a very important horizontal support zone as well as all important EMAs on a daily basis. From a technical chart perspective, a breakout on the upside would therefore be favored. At the moment, there is still short-term resistance at 41,700 points. If this is overcome, the air would be clear upwards to the old all-time highs.<\/p>\n\n\n\n

\"Candlestick
Dow Jones daily charts with EMAs (200, 100, 50, 20, 10)<\/figcaption><\/figure>\n\n\n\n

The declining volatility of recent weeks is also evident when looking at the Bollinger Bands, which are tightening. A basic rule on the stock market is: high volatility is followed by low volatility and low volatility is followed by high volatility. In other words, the longer the sideways phase lasts and the tighter the Bollinger Bands contract (\"squeeze\"), the more likely it is that the subsequent breakout will lead to new momentum.<\/p>\n\n\n\n

\"A
Dow Jones daily chart with Bollinger Bands<\/figcaption><\/figure>\n\n\n\n

Macro data at a glance<\/h2>\n\n\n\n

The focus last week was on the following economic data:<\/p>\n\n\n\n