“This past Friday marked the first time since Dec. 13 that DIA traded above its 320-day moving average on an intraday basis. The exchange-traded fund (ETF) pared its gains fairly quickly after the brief excursion above this trendline, and ultimately closed at $247.39 — flat with its bull-gap opening levels of the day, but just below its 320-day at $248.07,” according to Schaeffer’s.
DIA’s relative strength indicator (RSI) indicates the fund is slightly overbought, a condition that may need to be dealt with before the fund notches more upside.
“A bit of continued choppiness from here wouldn’t be surprising, then, given the confluence of technical levels in play — and given the headline-driven nature of this market, for that matter,” reports Schaeffer’s.
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