Dow Jones Broke Above $34,000 Key Area – Bulls to Continue Further?


Dow Jones Industrial Average climbed upward and hit an all-time high of $34,260 price area. Dow Jones broke above $34,000 key level as the bulls are optimistic. The Bulls to continue further higher 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. 

April 19, 2021, | AtoZ Markets – Dow Jones Industrial Average is currently trading around $34,195 price area and trying to recover further. After breaking over $33,200 to $33,400 resistance area with a bullish gap, DJI sustained its bullish momentum further and created a fresh high around $34,000 to $34,300 price area. As per the current price action, DJI may face strong resistance around $34,000 to $34,400 price area in the coming days.

Dow Jones Broke Above as the Overall Momentum Is Bullish

Dow Jones is currently residing near $34,195 price area and trying to climb further. However, the dynamic level of 20 EMA is still carrying the price as strong support on the intraday chart.

Dow Jones Broke Above

Image: DJI 4-Hour Chart

According to the 4-hour chart, Dow Jones broke above and currently trading around $34,195 price area. As per the current price action, if the price can break above $34,000 to $34,300 price area with a 4-hour bullish candle, the bulls may sustain the bullish pressure towards $34,800 to $35,000 price area in the process. On the contrary, if the price rejects $34,300 to $34,000 price area with an impulsive bearish candle close below, the bears may regain momentum and push the price down towards $33,400 to $33,200 area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may act as strong support in the process. However, the bears may regain momentum if the price can break below the dynamic level in the days ahead. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that the bears may regain momentum in the coming days.

DJI May Revert Back to the Mean

According to the daily chart, Dow Jones broke above, but the price requires a downside retracement. As per the current scenario, if the price can have a daily bearish candle close below $34,300 to $34,000 price area, the price may retrace towards $33,400 to $33,200 support area in the coming days. So, if the price retraced towards $33,400 to $33,200 support area and bounced higher with an impulsive bullish candle, the bulls may continue the bullish pressure towards $34,000 to $34,300 price area as a first target. The second target will be $34,800 to $35,000 price area if the price can break above $34,000 to $34,300 price area in the process.

Dow Jones Broke Above

Image: DJI Daily Chart

Along with this, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan lines. So, the dynamic level may pull the price downside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.

To conclude, the price requires a downward retracement before continuing the bullish trend further. A daily close will help to identify the definite momentum in the coming days. 

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