Bullish Trendline Could Push Dow Stock Higher

DOW sports a 15.8% six-month lead

Digital Content Manager
May 2, 2024 at 12:33 PM
facebook X logo linkedin

Dow In(NYSE:DOW) stock was last seen down 1.4% at $56.45, after running into resistance at the $58 region as it attempted to recover from a pullback from its April 4, 52-week high of $60.69. This creates the perfect opportunity for traders to buy the dip on a stock that sports a 15.8% six-month lead, especially as it sits near a trendline with historically bullish implications. 

Specifically, Dow stock's recent dip placed it within striking distance of its 100-day moving average. According to Schaeffer's Senior Quantitative Analyst Rocky White's data, DOW flashed five similar signals in the last three years, defined for this study as having traded north of this trendline 80% of the time over the past two months, and in eight of the past 10 trading days.

DOW 100 Day

Just one month later after 80% of those instances, the equity was higher, averaging a 6% gain. A comparable move from its current perch would place the stock back above $60.

Options traders are already placing their bets. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 5.55 sits higher than 88% of readings from the past 12 months. In simpler terms, bullish bets rose in popularity during the past two weeks.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!