Dow Jones Technical Price Outlook: Short-term Trade Levels
- Dow Jones technical trade stage replace – Daily & Intraday Charts
- DJI month-to-month opening-range breakout approaching first check of downtrend resistance
- Resistance 32375/441 (key), 33302, 34102/164 – Support 30547, 29794, 28323
The Dow Jones Industrial Average has rallied greater than 6.1% off the lows with the index now approaching technical, downtrend resistance. This is the primary actual check of the June rally and the main target is on doable inflection on a stretch larger. These are the targets and invalidation ranges that matter on the Dow Jones technical worth charts into the shut of the week. Review my newest Strategy Webinar for an in-depth breakdown of this DJI technical setup and extra.
Dow Jones Industrial Average Price Chart – DJI Daily
Chart Prepared by Michael Boutros, Technical Strategist; SPX500 on Tradingview
Technical Outlook: A topside breach of the July opening-range on the 19th shifted the near-term focus larger within the Dow throughout the confines of the broader yearly downtrend. The speedy focus is on a doable stretch in the direction of confluent resistance on the higher parallel close to 32375/441– a area outlined by the 100% extension of the June rally and the 38.2% Fibonacci retracement of the yearly1 vary. Looking for a bigger response in worth there IF reached.
Dow Jones Industrial Average Price Chart –DJI 240min
Chart Prepared by Michael Boutros, Technical Strategist; DJI on Tradingview
Notes: A more in-depth have a look at short-term Dow Jones worth motion reveals the index buying and selling wtihin the confines of a proposedascending pitchfork formation extending off the lows with the median-line additional highlighting key resistance at 32375/441. A topside breach / shut above this threshold could be wanted to counsel a extra important low was registered final month / a bigger restoration is underway with such a state of affairs exposing 33302 and the 61.8% retracement at 34164. Initial help now 31480 backed by 30547– a break / shut beneath this threshold would threaten resumption of the broader downtrend in the direction of subsequent help targets at 29794/888 and the November 2020 uncovered hole at 28323.
Bottom line: The Dow Jones Industrial Average has rebounded off downtrend help with the restoration now approaching downtrend resistance- we’re looking out for doable topside exhaustion. From at buying and selling standpoint, look to cut back long-exposure / elevate protecting stops on a stretch in the direction of 32375/441 – losses ought to be restricted to 30547 IF worth is heading larger with a breach / shut above the higher parallel wanted to clear the way in which. Review my final Dow Jones Weekly Technical Forecast for a more in-depth have a look at the longer-term SPX 500 technical trade ranges.
For a whole breakdown of Michael’s buying and selling technique, evaluate his Foundations of Technical Analysis sequence on Building a Trading Strategy
Dow Jones Industrial Average Trader Sentiment – DJI Price Chart
- A abstract of IG Client Sentiment reveals merchants are net-short the Dow- the ratio stands at -1.12 (47.08% of merchants are lengthy) – usually a impartialstudying
- Long positions are7.67% larger than yesterday and 27.42% decrease from final week
- Short positions are 10.00% decrease than yesterday and 50.45% larger from final week
- We usually take a contrarian view to crowd sentiment, and the very fact merchants are net-short suggests DJI costs could proceed to rise. Traders are much less net-short than yesterday however extra net-short from final week. The mixture of present positioning and up to date modifications provides us an additional blended Dow Jones buying and selling bias from a sentiment standpoint.
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-Written by Michael Boutros, Technical Strategist with DailyFX
Follow Michael on Twitter @MBForex