In the daily Renko chart, the W pattern Double Bottom is apparent. Dow touched the low of 30560 twice, bounced off the low, and went up from there. The only thing not yet confirmed is being able to close above 31920.
On Friday, 3/5/2021, the February nonfarm payrolls expanded 379,000 and the January figure was revised higher. The February was much better than expected. Nonetheless, it was a positive sign that more workers are returning to the job market. The over sentiment is the numbers will only get better when more people are vaccinated.
The W Pattern Double Bottom on the chart is a bullish signal and will give the DJIA a boost. Dow is expected to move higher. Since 32,000 is a big round number, it is a natural psychological barrier. Dow is expected to move around 32,000 for a bit before it climbs higher.
W Pattern Double Bottom
In technical analysis, the low of the W is considered a strong support level because it was tested and confirmed twice. It is a bullish pattern. However, the W or Double Bottom pattern is not 100% accurate of the time, but it is right about 75% to 80% of the time.