Dow Jones Industrial Average (DJI) Is Breaking out – Long Term Overview

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The Dow Jones Industrial Average (DJI) is a price-weighted average of a 30 “blue-chip” stocks that are the U.S leaders in their industry. The Index has been widely followed by Wall Street and private traders since October 1, 1928.

Last month, we saw the Index breaking out from a 2 year trading range that started in January 18, 2019 (see chart below). In addition, we saw the long and medium term moving averages (200 red and 50 green) starting to shape up again, with the 50 day trending above the 200 day which shows upward momentum.

Also looking at recent decade price history, you can see in the chart below that between 2015-2017 we had a very similar trading range which resulted in a huge breakout on Nov-Dec 2016 and lasted 1 year (green circle- about 8,000 points run!!!) up to January 2018. With the recent breakout in the index, following a similar trading range time, we wonder if the Dow can repeat history and provide us a great year in 2020…

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