FxWirePro: Dow target extended from 22500 to 23500

Back in July last year, in an article named, “FxWirePro: Dow may be heading towards a test of 20000 area”, available at http://www.econotimes.com/FxWirePro-Dow-maybe-heading-towards-a-test-of-20000-area-239558 , we suggested that Dow might be heading towards 20000 area from the then current price of 18540.

After the election of Donald Trump, in a subsequent article, published in last December, named, “FxWirePro: Dow reaches 20000 target; extended to 22500”, available at http://www.econotimes.com/FxWirePro-Dow-reaches-20000-target-extended-to-22500-461273 , we suggested that the index would reach 22500 over the course of next year or so.

The Dow Jones industrial average is currently trading at 21990 and we remain committed to the above-mentioned target, despite the political gridlock in Washington. While the Republicans continue to fail to pass much promised health-care reforms, we strongly suspect that the fight would be a lot easier when it comes to the tax reforms.

In addition to that, the recent earnings have shown that the economy remains strong despite it being a jobless recovery for many. While the current turmoil in the White House remains a major drag, but it surely is not an unexpected one, given the insurgent nature of this Donald Trump presidency.

We not only remain bullish on Dow Jones Industrial average, we would like to extend the target to 23500. However, expect strong profit bookings near our previous target around 22500.