DJ Utility

DJ Utility Index (DJU) has broken out from the channel on July 27, 2021. In yesterday's trading session it has re-tested the breakout point. Currently, it is trading above the key daily moving averages, and price action suggests that it is possibly forming a cup and handle pattern which is a bullish continuation pattern. The confirmation of the cup and handle pattern will occur once it closes above the trendline which is currently pegged at 942 but the index breaking out from the channel and trading above the key daily moving averages are signaling a higher possibility of a cup and handle pattern breakout in the coming weeks. Once the breakout occurs, the DJU index can rise higher towards the upper end of the channel which is currently pegged at 1010.