The Dow Jones index recovered from sharp drop to end 22 points lower at 26007 on Wednesday.
8 August 2019 | SQUARED DIRECT – US indices ended mixed on Wednesday with the Dow Jones being the only index to end in the red. While the global growth outlook deteriorates due to fundamental risks posed by increasing US-China trade tensions, market participants may find room to cautiously drive US equities higher in the absence of further trade developments.
Today the US publishes initial jobless claims data which is unlikely to have an impact as sentiment over US-China trade relations drives price action.
Dow Jones technical analysis
The Dow recovered from sharp drop to end 22 points lower at 26007 on Wednesday. The price dipped below the 200-day MA near 25550 to record an intra-day low of 25384 before edging back above the 26000 level.
The bullish divergence indicated by the daily RSI reading’s failure to correspond with price action suggests further upside in the short-term. Look for a sustained move above the 26000 level to indicate buying pressure and target the higher resistance level at 26115 followed by 26270 near the 100-day MA.
Failure to hold above the 26000 level should see the price decline towards the support at 25730 followed by the 200-day MA at 25550.
Resistance: 26115/ 26240
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