Since the beginning of the year the US index gained more than 5.5% and last week rose over 1.0% in addition the US index made a phase change, shifting from a warning to a bullish phase.
Last week the index rose with a wide range and closed near the high of the week, in addition managed to close above the previous week high, which suggests a strong bullish momentum.
The stochastic is showing a strong bullish momentum and is above the 50 mid line.
Dow Jones Industrial Average is trading above the 10-week moving average that now should provide a dynamic support for next week.
Expecting an upward move to a Fibonacci extension at 21,420 (scenario 1) on a break above the previous week high at 21,010 however a bounce from the key level at 20,500 may trigger a flow of buyers thus pushing the index up to a Fibonacci extension at 21,420 (scenario 2).