Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Now that we’ve covered the basics of the DJTA, let’s get into the bullish<\/a> pattern I see on its price chart…<\/p>\n I’ve highlighted three key things from this chart…<\/p>\n The red horizontal range lines between 16,418 and 16,588 is my initial upside target (1). The DJTA broke down from this range back in November 2021. Since then, it’s gone on to test it as resistance<\/a> in December and January.<\/p>\n If prices successfully break higher, then there’s a strong likelihood that we’ll test this range once more. If the index can successfully punch through it, then I’ll provide an update with my next set of targets.<\/p>\n<\/li>\n Next is the bullish<\/a> price pattern I had mentioned earlier. The pattern is an inverted head and shoulders formation, and they typically take shape near market bottoms.<\/p>\n I’ve labelled the left shoulder, the head, and the right shoulder, and the neckline of the pattern using a blue line (2).<\/p>\n Once prices break out above the neckline, the pattern is considered complete… and so long as prices don’t break below the head of the pattern, this setup will remain valid.<\/p>\n<\/li>\n Finally, we have bullish divergence<\/em> take shape in the Relative Strength Index (RSI)<\/a> at the lower portion of the chart (3). Bullish divergence occurs when prices continue to make new lows, but the indicator starts to make new highs.<\/p>\n The RSI bottomed out on February 24 and has been trending higher since. This is the kind of supporting technical analysis<\/a> I like to see when assessing a potential market bottom.<\/p>\n<\/li>\n<\/ol>\n The combination of this inverse head and shoulders pattern with the bullish RSI divergence has a lot of promise.<\/p>\n Of course, all eyes will be on the FOMC meeting taking place later this afternoon…<\/p>\n But if the market reacts positively to the meeting, then I can see this trade playing out quickly.<\/p>\n Happy trading,<\/p>\n![\"Chart\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202203\/20220316-jmu-01_bgt263.png\")
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