 Hello and welcome to the chart of the week video with me David Madden Today's date is Wednesday at the 1st of August and the time has just gone 1135 British summer time This week's chart of the week is going to be the Dow Jones The Dow Jones only last week hit a Multi-month high which really sums up a lot about the sentiment of the Dow Jones and taking a look at the price action 2018 we can see that after even though a pretty rocky start and a pretty sizable correction In the early part of the year it has been broadly moving higher over the last number of months and as I said It didn't manage to hit it's in a multi-month higher. It's highest level since late February only last week Starting off if you take a take a look at the from the the lows of February if you draw a line between a trend line between the lows of February to the lows of April and she may You see this this line here is acting as very decent support So it's pretty decent trend line support from this this is this line here I've said to you while it holds above that that trend that support line The outlook is likely to remain positive Also, we can see in recent weeks that this red line here the truly moving average the market's being back Over to the moving average so to the moving average is often seen as a good barometer of our sentiment that the markets above the two 200 day moving average it is quite positive and if it's below that the turn of the moving average it is It's it would indicate sentiment is weak So if I take a look at the price action since April It's been in a fairly good example of a upward trend and an upward trend is defined as higher highs and higher lows As you can see here the market for shark reading a higher high higher low higher high higher low higher high Granted this low here did manage to take out the The the low of late May but after that the market they managed to push on hard yet again and take out the June high And I as I said go on to hit its highest level since late February Take a look at the price action in recent session because in the market After hitting the multi-month high has cooled a small bit And if you take a look at the Mac the indicator Mac the Instagram We can see a slight cooling in the in the positive rate of positive lentim So as the market is drifting lower positive lentim is cooling as well. So we might see This near term move edge a bit lower Before potentially looking to resume the wider upper trend that that it is in And the market does drift lower from here. We could find some support in around the 25,000 area It's a big psychological number and if you go below south of that support might come into play I this blue line here the fifth of the moving average. No, so I like a support In in mid-June, sorry in mid-July and also in late May So if it has written history of acting in support it may do so again in the future Even if you go south of there Support might be found at this red line here at the eternity moving average notice How it acts as both support and resistance in in late June and early July So once again if it's been a significant metric in the past It's likely to do so again in the future and even if you drop drop below that Support might be found in around this area here from the trend line lows of February April and May I'll come into play in around the 24,000 area And a break below that trend line would be would indicate We could be a worrying sign and it could indicate that we are looking for further losses But as you mentioned Mark's been in an upward trend for the last number of months If we do measure going to push on higher from here, and if you take out last week's last week's high of 25,589 we could be looking at targeting the mid the mid to late High in February at it comes to play at 25,821 and move beyond that We then bring the psychology important at 26,000 level into play and if you take out 26,000 traders that then be looking up towards the January high or the all-time high of 26,706 If you are trading at the Dow Jones keep keep mind that the Fed Reserve will have an interest rate decision tonight So we could see addition of volatility on the back of that. Well, that's all for me this week. Thank you very much