09 June 2025 : Dow Jones Eyes 5000-Point Rally: Inverse Head & Shoulders Breakout Ahead

 Dow Jones Eyes 5000-Point Rally: Inverse Head & Shoulders Breakout Ahead

Dow Jones Industrial Average (DJIA) is displaying a classic Inverse Head & Shoulders Pattern on the daily chart, signaling a possible trend reversal. A decisive breakout above the crucial neckline resistance at 43,000 could trigger a swift 5000-point rally, toward the 47,000–48,000 zone. Traders and investors are closely watching this pattern as a reliable bullish signal backed by strengthening RSI and Moving Average crossovers. Let’s decode the key levels, indicators, and breakout strategy.

"It's very important to note that decisive breakout has yet to come. If it breaks higher above neckline then only it will be a buy and strong buy. If it fails at neckline line then fall is unavoidable. Looks like July will be a month of euphoric move or be it can starts from last week of June itself. "

Technical Overview:

• Pattern: Inverse Head & Shoulders
• Left Shoulder (LS): 40,300
• Head: 36,600
• Right Shoulder (RS): 41,800
• Neckline Resistance: 43,000
• Target: 47,000 to 48,000

Indicators:

• RSI (14): 60.92 — bullish momentum building.
• Moving Averages: Price trades above SMA 20, 50, and 100.
• Breakout Level: 43,000
• Support Levels: 41,500 and 40,000

Trading Strategy:

Wait for a confirmed breakout above 43,000 with closing basis confirmation. Target zones would be 45,000 → 47,000 → 49,000. Protect positions with a stop loss below 41,500.

For option traders, look for Call OI build-up in 43,000–44,000 strikes and watch for a possible gamma squeeze scenario post-breakout.

Chart Snapshot:

Conclusion:

Dow Jones is poised for a strong upside swing provided a clean breakout happens above 43,000. Watch this key level closely for a potential 5000-point rally towards 48,000. In conclusion, the Dow Jones Industrial Average is on the brink of a significant bullish breakout. A sustained move above 43,000 can confirm the Inverse Head & Shoulders Pattern, potentially triggering a sharp rally toward 47,000–49,000 levels. Keep a close eye on the RSI, Moving Averages, and options open interest build-up for added confirmation. This breakout setup offers an attractive swing trading opportunity in the coming sessions.