(^DJI) Technical Pivots with Risk Controls

January 20, 2025, 08:00 am ET, BY Patrick- Contributor, Stock Traders Daily| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Longer Term Trading Plans for ^DJI

• Buy ^DJI near 42006.05 target 43497.94 stop loss @ 41884.74 Details

The technical summary data tells us to buy ^DJI near 42006.05 with an upside target of 43497.94. This data also tells us to set a stop loss @ 41884.74 to protect against excessive loss in case the stock begins to move against the trade. 42006.05 is the first level of support below 43487.8 , and by rule, any test of support is a buy signal. In this case, support 42006.05 would be being tested, so a buy signal would exist.

• Short ^DJI slightly under 43497.94, target 42006.05, stop loss @ 43623.56 Details

The technical summary data is suggesting a short of ^DJI as it gets near 43497.94 with a downside target of 42006.05. We should have a stop loss in place at 43623.56though. 43497.94 is the first level of resistance above 43487.8, and by rule, any test of resistance is a short signal. In this case, if resistance 43497.94 is being tested, so a short signal would exist.

Swing Trading Plans for ^DJI

• Buy ^DJI slightly over 43497.94, target 44927.2, Stop Loss @ 43372.32 Details

If 43497.94 begins to break higher, the technical summary data tells us to buy ^DJI just slightly over 43497.94, with an upside target of 44927.2. The data also tells us to set a stop loss @ 43372.32 in case the stock turns against the trade. 43497.94 is the first level of resistance above 43487.8, and by rule, any break above resistance is a buy signal. In this case, 43497.94, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short ^DJI slightly near 43497.94, target 43120, Stop Loss @ 43623.56. Details

The technical summary data is suggesting a short of ^DJI if it tests 43497.94 with a downside target of 43120. We should have a stop loss in place at 43623.56 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 43497.94, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for ^DJI

• Buy ^DJI slightly over 43497.94, target 43611.09, Stop Loss @ 43396.46 Details

If 43497.94 begins to break higher, the technical summary data tells us to buy ^DJI just slightly over 43497.94, with an upside target of 43611.09. The data also tells us to set a stop loss @ 43396.46 in case the stock turns against the trade. 43497.94 is the first level of resistance above 43487.8, and by rule, any break above resistance is a buy signal. In this case, 43497.94, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short ^DJI slightly near 43497.94, target 43166.67, Stop Loss @ 43599.42. Details

The technical summary data is suggesting a short of ^DJI if it tests 43497.94 with a downside target of 43166.67. We should have a stop loss in place at 43599.42 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 43497.94, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Check the time stamp on this data. Updated AI-Generated Signals for Dow Jones Industrial Average (^DJI) available here: ^DJI.

^DJI Ratings for January 20:

Term →	Near	Mid	Long
Rating	Strong	Neutral	Strong
P1	0	0	42006.05
P2	43166.67	42329.77	43497.94
P3	43611.09	43120	44927.2

AI Generated Signals for ^DJI

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The technical pivots for Dow Jones Industrial Average (NASDAQ: ^DJI) help you determine how to trade, when to buy, when to sell, and how to control risk.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for ^DJI change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

Subscribers also receive market analysis, stock correlation tools, macroeconomic observations, timing tools, and protection from market crashes using Evitar Corte.  

Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if ^DJI is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for ^DJI too.  All of these are offered below the Summary Table.