200 Day Moving Average Test Might Be a Good Entry Point

Hopefully, the last correction might have opened up another buying opportunity.

Craig Johnson, senior technical analyst at Piper Jaffray, is also bullish on the Dow. Tests of the index’s 200-day moving average have “proven to be great buying opportunities” over the past few years, he said. That’s because an uptrend he sees as beginning in 2011 is still intact.

“This to me looks and feels like just a normal pullback, correction right back to the 200-day, and a great buying opportunity,” Johnson said. “At this pullback here, we’re starting to look a little bit oversold.”