There’s a barrier that’s been holding back mounds of cash for quite some time. Once it breaks, it’ll fill the pockets of only those who know where it’ll fall.
The media will be late on this big break, so don’t go crawling to them. When they announce it, it’ll be too late.
I’ve been monitoring this barrier for quite some time now, and I’ve got a firm understanding of where the cash will fall when the imminent break occurs, and I want to share it with you.
The main headlines on the stock market in the recent month have all been about the Dow 20k—the moment when the Dow Jones Industrial Average ($INDU) will break 20,000.
This monumental milestone is all anyone is dreaming about on Wall Street.
Personally, I think the hype is a little much, but I do think there’s something interesting starting to form in the Dow Jones chart pictured below.
All the hype surrounding the Dow 20k has created a ceiling that the chart keeps bouncing off of.
The technical term for this is a line of resistance, which is fairly straight-forward to remember because the line is resisting the price from breaking through it.
A successful technique that I use for trading includes an approach where I watch to see how many times the stock bounces off the ceiling, which usually reveals the perfect moment to pull the trigger on a trade.
I don’t know when the Dow Jones will break 20,000, but I think that when it does, it’ll be a strong sign for the market.
So how do you profit off this?
Well, you could trade the Dow Jones if you really wanted to, but you’d have to shell out a lump of cash to even buy one share—around $19,855 at its current price.
A cheaper way to trade the Dow Jones can be found by trading the SPDR Dow Jones Industrial Average ETF (DIA).
As you can see in the chart below, it’s a lot more affordable, and mirrors the Dow Jones Industrial Average chart on a smaller scale.
The ceiling on the DIA is currently sitting at 200. Whenever the Dow Jones finally breaks the 20,000 mark, the DIA would break the 200 mark in unison and have the same effect.
I believe that when the Dow 20k is finally broken, the floodgates will open and the opportunity for profits will start to pour in.