Chemical producer Dow Inc. (DOW) has returned to the Green Favored Zone in the SIA S&P 100 Index Report from a brief dip into the yellow zone after moving up 3 spots yesterday.
Dow (DOW) shares are bumping up against the top of a $39.00 to $45.00 trading range. Higher lows indicate continuing underlying accumulation and a breakout would signal the start of a new upleg. Next potential upside resistance tests on a breakout appear near the $50.00 round number, and the previous peak near $54.00. Initial support appears near the $40.00 round number.
Following a May breakout rally, DOW shares staged a correction in June that bottomed out at a higher low near $39.00. Since then the shares have been under renewed accumulation, snapping a downtrend line and building an upward trend of higher lows.
Currently the shares are testing $45.00 where a breakout would complete a bullish double top pattern and confirm the start of a new upleg. Should that occur, next potential upside resistance may appear near $48.50 where a vertical count and previous high converge then $50.00-$50.50 between a round number and previous high, and then the previous peak near $55.75. Initial support appears near $40.60 based on a 3-box reversal.
With a bullish SMAX score of 6, DOW is exhibiting near-term strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
