The Dow Jones Industrial Average could rally to close to 11,800 points and investors should buy each dip until it reaches 10,730, Roelof van den Akker, senior technical analyst from ING Wholesale Banking, told CNBC Tuesday.
"Now we have broken the previous high of January around 10,730, we have to look at the possibilities on the upside," van den Akker said.
About a year ago the Dow hit its lows around 6,500 points and started to rally from there after the index completed a "large falling wedge pattern above," he pointed out.
The beginning of the falling wedge pattern gives a price target for the current rally of around 11,800 points, according to van den Akker.
The Dow ended higher at 10,985 Monday.
"We recommend buying each dip towards 10,730 for a rally towards this 11,800 price target," he added.
- Watch the video above to see van den Akker's views on the German DAX.
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