Dow Jones Technical Outlook (DIJA)

After late last week pull back the Dow Jones is finally breaking up the 13000 levels. Although there is a marked divergence between the Index and the MACD indicator, in general the technical perspective make us believe the upper trend may continue. 10 and 20 day moving averages are crossing up, while all other MA's are in direction to total convergence. At the same time RSI is well above the 50 level (an indication of trend continuation) and more importantly, after last week pull back a double bottom pattern was formed and its most recent peak broken. In the short term, a triple bottom formation was followed by a rising trend that broke the most recent peak. The Bollinger Bands we used for short term oscillating trend analysis shows a break at the level shown in the graph below. This and all other technical perspectives may indicate a continuation to the next resistance level of 13160 and 13700. In case of a pull back, the support levels are respectively 13000 and 12650.