Dow Jones Index Recovers; Targets 30358 After Silver-Induced Rally

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The Dow Jones Industrial Average got off to a positive start for the week after it was reported earlier that US President Joe Biden was willing to meet with Republican senators to fashion out details of the stimulus deal. 

The Dow also rallied on the coordinated buying actions of retail traders, who have pushed into silver in droves and sent silver prices soaring to 8-year highs. There are also indications that stocks of companies associated with silver mining have benefited from this rally. 

The Dow is now trading at 30103 as at the time of writing, translating into gains of 0.58% on the day. 

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Technical Levels to Watch

After an initial dip, the Dow managed to find bullish momentum, keeping the index above the 29842 price support level. Price is now testing resistance at 30101 and requires a break of this level to target the 30358 resistance target. Above this level, 30585 becomes a new target but still lies well short of the all-time highs at 31288.

On the flip side, an inability of bulls to send the price above 30101 could provoke a pullback which retests the 29842 price level. A breakdown of this area brings 29255 into the picture. 28979 forms another barrier to the south.

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Dow Jones Daily Chart

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