Dow Jones Industrial Average bulls are still holding the momentum over $34,400 to $34,500 price area. Dow Jones bounced higher from $34,500 support level. Will the bulls continue further upside in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s DJI Technical Analysis.
July 8, 2021, | AtoZ Markets – Dow Jones Industrial Average is currently trading around $34,680 price area and trying to climb higher. After breaking below $34,500 to $34,400 price area, the bears pushed the price down impulsively and reached $33,700 to $33,500 price area. However, the bears failed to continue the bearish pressure below $33,700 to $33,500 price area and bounced higher again. As per the current price action, the price may face strong resistance around $34,900 to $35,000 price area in the coming days.
Dow Jones Bounced Higher as the Bulls Are Still Residing On the Market
DJI is currently residing near $34,680 price area and trying to recover upside. However, the price also found support at the dynamic level of 20 EMA on the intraday chart.
Image: DJI 4 Hour Chart
According to the 4-hour chart, Dow Jones bounced higher and currently trading around $34,680 price area. As per the current price action, if the price can have an impulsive bullish candle close above the last candle’s high, the price may recover higher towards $34,900 to $35,000 price area in the process. So, if the price recovers upside and rejects $35,000 to $34,900 key resistance area with an impulsive bearish candle, the bears may regain momentum and push the price down towards $34,500 to $34,400 price area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as a strong support to push the price upward. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. However, the Bollinger Bands upper band is currently residing above the price, which may work as strong resistance in the days ahead.
DJI May Continue the Bullish Trend
According to the daily chart, Dow Jones bounced higher as the investors are optimistic. As per the current scenario, if the price can break above the last daily bullish candle’s high, the bulls may continue the bullish bias towards $34,900 to $35,000 price area as a first target. The second target will be $35,500 to $35,600 key area if the price can break above $34,900 to $35,000 resistance level in the coming days.
Image: DJI Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price, which may work as strong support in the process. Along with this, the MACD lines are currently residing above the 0.00 level and had a bullish crossover. It indicates that the bulls may continue the bullish bias further in the days ahead.
To conclude, as the price had an impulsive daily bullish candle close after bouncing from $34,400 to $34,500 support level, there is a high chance that DJI may continue the bullish trend further in the coming days.