Dow Jones (DIA) Update: Battling Bears and the $343 Line

Hey there, fellow market adventurers! It's Meta Matt here again, and you guessed it; it's time to dive back into another one of Lee's August Stock Market thesis, where we'll unravel the intriguing world of market trends and opportunities. So, buckle up and let's break down what's been brewing in the financial landscape.

Dow Jones (DIA) - Battling the Bears

Lee kicked off his thesis with a look at the Dow Jones (DIA), where bears had their say after some spirited price action the previous week. The bears came out swinging, and they weren't messing around! The Dow Jones was looking a little wobbly with a current stock price of $353 at the time of Lee's Thesis.

But fear not, there's hope on the horizon. Lee had his eyes locked on a crucial support level at $343. This level was like a defensive line at the 1-yard line in the 4th quarter of a close football game – it needed to hold for the bulls to get back in the game. If $343 crumbled like a house of cards, brace yourselves for a potential tumble down to $336. The RSI (Relative Strength Index) was still above 50, but it was starting to show signs of weakness. Uh-oh!

Trading Plays for DIA:

• Bullish Scenario: If we re-test and hold $343, we're looking at a target range of $346-$348 by the end of the trading week. Bulls, this one's for you!
• Bearish Scenario: Now, if we plummet beneath $343, the bears might dance all the way down to $336-$340. Hold on tight, it could be a bumpy ride.

Make sure to check out last week's Thesis by Lee: https://blog.pbalerts.com/etfs-we-are-watching-in-august/

Bristol-Myers Squibb (BMY) - The Bullish Trail Continues

Lee's next pick was none other than Bristol-Myers Squibb (BMY). Things were looking pretty upbeat here. BMY notched another green week and seemed to be comfortably situated in the uptrend zone. The name of the game? Higher lows and higher highs to confirm that the bulls were ready to boogie. And guess what? The RSI was showing some bullish divergence on the chart. Cue the confetti!

Trading Update for BMY:

• Lee and the gang had been LONG from the trendline support hold at $60, and guess what? The targets hadn't budged! They were still aiming for the $67-$75 level. Talk about conviction! With over 50 different trials and compounds in their pipeline, BMY was feeling like a star player.

LABU - Riding the Biotech Wave

Now, let's zoom in on Lee's Healthcare ETF pick – LABU, a Bull ETF focused on biotech. Lee had some exciting updates here. LABU had taken a joyride to the low $4 support level, a spot it had last visited in June 2022 and March 2023. But what happened next was like watching Logan Paul's career rise from the ashes after the "forest incident in Japan". The bulls roared back, turning Friday's trading day into a victorious green spectacle!

Trading Opportunity in LABU:

• Lee was bullish for the long term, and here's why. As long as that low $4 support level stood its ground, it was a risk worth taking. Risking a maximum of 10% for a potential gain of at least 20% over the next few weeks/months? Now, that's what we call a sweet deal! The RSI might have been a little oversold at 31, but it was showing signs of waking up from its slumber.

Support and Resistance Dance in LABU:

• Support Levels: $4.35 & $4.10
• Resistance Levels: $5.35 & $5.90

So there you have it – Lee's weekly thesis decoded for your trading delight. Remember, in the world of finance, knowledge is power. So, keep those eyes on the support levels, watch for those bullish divergences, and may your trades be ever in your favor. Until next time, happy trading! 🚀📈

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