During last few months, many times I talked about the chance of a medium to long-term bullish pattern for DOW and now when DOW proves its short-term bullish pattern, that option is looking strong.
DOW is trying to make a base above 13100 level and its close in the last day was better. Now though DOW is in little over-bought condition but still there is room for more upside movements. So if it able to break 13200 then 13300 may become the next target for DOW.
If DOW fails to break 13200 then there is a risk that it may drop from this level, especially considering the movements above 13100. Since DOW is making higher lows (or closing) so even if DOW drops from this level, that drop may remain limited. Levels around 12900 may act as a good support for DOW in the upside. The chance of further drop will be still there but I will be talking about the bearish pattern when DOW tests level around 12500.
NOTE: Please see the disclaimer of this blog.