Dow Jones Bulls Holding the Bias Over $34,500 Price Area – What Next?


Dow Jones Industrial Average has become volatile, but still remains above $34,400 to $34,500 support level. Dow Jones bulls are holding the bullish bias over $34,500 price area. What is next? The bulls to continue further upward 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. 

June 7, 2021, | AtoZ Markets – Dow Jones Industrial Average is currently trading around $34,760 price area and trying to climb further. After bouncing from $33,500 to $33,700 support level, the bulls have regained momentum and broke over $34,400 to $34,500 psychological resistance area. As per the current price action context, the price may face strong resistance around $34,900 to $35,000 key area in the coming days.

Dow Jones Bulls Holding as the Investors Are Optimistic

Dow Jones is currently residing near $34,760 price area and trying to push upward. However, the dynamic level of 20 EMA is still holding the price as strong support on the intraday chart.

Dow Jones Bulls

Image: DJI 4 Hour Chart 

According to the 4-hour chart, Dow Jones bulls are holding the bias and currently trading around $34,760 price area. As per the current price action, the price may recover higher towards $34,900 to $35,000 price area in the process. So, if the price recovers towards $34,900 to $35,000 price area and rejects with an impulsive bearish candle, the bears may regain momentum and push the price down towards $34,500 to $34,400 price area as a first target. The second target will be $33,700 to $33,500 price area if the price can break below $34,500 to $34,400 support level in the coming days.

In addition, the dynamic level of 20 EMA is currently residing below the price, which may work as strong support in the process. Moreover, the MACD lines are currently residing above the 0.00 level and may have a bearish crossover. Besides, the histogram has created a bearish divergence. Both indicate that the bears may regain momentum in the days ahead.

DJI May Sustain the Bullish Trend

According to the daily chart, Dow Jones bulls are holding the bias as the bulls are still optimistic. As per the current scenario, if the price can break over $34,900 to $35,000 key resistance area with a daily bullish candle close, the bulls may sustain the bullish trend towards $35,500 to $35,600 price area in the coming days. Alternatively, if the price rejects $35,000 to $34,900 resistance area with an impulsive daily bearish candle, the bears may regain momentum and push the price down towards $34,500 to $34,400 price area as a first target. The second target will be $33,700 to $33,500 price area.

Dow Jones Bulls

Image: DJI Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may carry the price as strong support. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. However, the bears may regain momentum if the price can break below the dynamic level in the days ahead.

To conclude, as the overall momentum is still bullish, there is a high chance that the bulls may continue the bullish trend further. A daily close is needed to identify the definite momentum in the coming days. 

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