DJIA Tests Major Resistance – Reversal or Breakout Next?

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The Dow Jones Industrial Average is pressing against a key resistance zone near 40,860, the neckline of a double-bottom pattern after rebounding sharply from its mid-April low:

📈 Strong 2-week rally from sub-37K lows
🔵 Price attempting to break the neckline after reclaiming the 50-day SMA
📊 RSI near neutral at 51 – plenty of room to run
📉 MACD accelerating upward, hinting at bullish momentum

If price clears and holds above 40,860, bulls could target a move back toward 42,500–43,000. Failure to break this zone may trigger a pullback toward the 50-day SMA near 41,500.

The setup is constructive — but the bulls need confirmation.

-MW

Penafian

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