The Dow Jones Index Rally Stays on Course to Take Another Shot At 40,000 Mark

Summary:
• The Dow Jones Index has recorded its best weekly performance in 2024, and has built a strong momentum. But could it move to the 40k mark?

 The Dow Jones Index sustained its rise as it extended its winning rally to the ninth consecutive session on Monday to record 39,548 points, having gained 0.15 percent. The index is on course to register the longest winning streak since July 2023, underlying the strong bullish momentum in the markets. Furthermore, it brings the index to yet another marginal distance from the psychological 40,000 points mark, after previously coming within 14 points of the mark on April 1.  

UnitedHealth shares closed trading on Friday at 1.14 percent, to hit 512.81, and on course to reverse the losses incurred since early March. Microsoft, the index’s third-largest company by weight, was up by 0.56 percent in the pre-market session on Monday to trade at $414.74, as investors continue to buy into the tech company’s AI and clod-focused growth strategy. Payments services giant, Visa, was another notable gainer in Monday’s pre-market session, with the share price up by 0.79 percent, having risen by $2.20 to trade at $280.74.

However, Goldman Sachs shares traded at 0.18 percent below Friday’s closing price in the Monday premarket session. Also, Apple share price was down by 0.69 percent in the premarket session and trading at $183.05.

Generally, investors are increasingly betting on an interest rate cut in the second half of the year, as recent data releases show that the US economy could be struggling. Therefore, more analysts are convinced that the Fed may consider shaving the current elevated interest rates to ease the pressure on the economy.  This sentiment could help the Dow Jones Index extend its uptrend.

Technical analysis

The momentum on the Dow Jones Index signals a strong bullish control, with the pivot at 39500.63.  The upside will likely continue if the buyers keep the price above that mark. In that case, the upward motion will likely meet resistance at 39,854.05. Furthermore, a break above that level could result in more upside momentum to test 39,702.76. However, if the index moves below 39,500.63, the sellers will be favoured to take control. The downside will likely find the first support at 39,426.83, and a move below that level will invalidate the upside narrative. Also, such a move could result in the sellers taking the price further down to test 39,330.58 in extension.