Dow Jones Industrial

Dow Jones Industrial Average (DJI) entered a corrective phase after forming a high of 35091 in early May 2021. The correction in DJI unfolded in a flag pattern. From the recent low of 33272, DJI has seen a five-wave rise and it is now on the verge of breaking out from the flag pattern. Once DJI breaks and sustains above 34570, it can re-test the May 2021 high of 35091, and subsequently, it can rise higher towards the pattern target of 36100. The 20DMA and 40DEMA are currently pegged at 34261 and 34115 and both these key moving averages will provide support in the short term. Remember the Nasdaq and Dow have been witnessing strong sector rotation, when one performs the other enters a correction. So time for the Industrials again?