Last Friday, the Dow Jones hit a low of 50,815. This price was last seen in early October and may be forming a solid support level; however, we believe it could continue to fall, as it is under downward pressure.
The Dow Jones could continue to rise in the coming hours until it reaches the 200-period exponential moving average (EMA) and the 21-period simple moving average (SMA), around 52,152.
A decisive break above the 3/8 Murray level, around 52,343, could support a continuation of the uptrend. It could then be expected to reach the 4/8 Murray level, around 53,125, and ultimately reach the upper band of the downtrend channel formed since October 23, around 53,250.
US nonfarm payrolls released last week were favorable for the US economy, which helped the Dow Jones recover, and we believe the index could continue to rise this week. Therefore, any pullback toward the 1/8 Murray zone, around 50,800 points, will be considered an opportunity to open long positions.
On November 5, the Eagle indicator reached the 5-point zone, indicating extremely oversold conditions; this could support a recovery in the Dow Jones in the coming days. Therefore, any pullback—provided the price remains above 51,000 points—will be considered a buy signal.