Dow Jones Industrial Average sustains below $34,250 to $34,000 price area. Dow Jones is facing resistance around $34,250 key price area. What is next? Bears to regain momentum 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.
May 3, 2021, | AtoZ Markets – Dow Jones Industrial Average is currently trading around $33,880 price area and trying to push lower. After bouncing from $33,000 to $33,200 support level, the bulls have regained momentum and pushed the price higher impulsively, and hit an all-time high of $34,250 price area. As per the current price action context, the price may retrace downside towards $33,200 to $33,000 price area in the coming days.
Dow Jones Facing Resistance as the Price Requires a Downward Retracement
Dow Jones is currently residing near $33,880 price area and trying to push downward. However, the price is still residing over the dynamic level of 20 EMA on the daily chart.
Image: DJI 4 Hour Chart
According to the 4-hour chart, Dow Jones is facing resistance and currently trading around $33,880 price area. As per the current price action, if the price can have an impulsive bearish candle close below the dynamic level of 20 EMA, the bears may regain momentum and push the price down towards $33,200 to $33,000 price area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing near the price. So, it may work as strong resistance if the price can have an impulsive 4-hour bearish candle close below it. Moreover, the MACD lines are currently residing above the 0.00 level and gradually sloping downside. It indicates that the bulls are losing the momentum of the market.
DJI May Continue the Bullish Trend
According to the daily chart, Dow Jones is facing resistance at the key resistance level. As per the current price action context, if the price can have an impulsive daily bearish candle close below $34,250 to $34,000 price area, the bears may regain momentum and decline towards $33,200 to $33,000 support area in the process. On the contrary, if the price push higher and breaks over $34,000 to $34,250 key resistance area with an impulsive bullish candle, the bulls may sustain the bullish trend towards $34,800 to $35,000 price area in the days ahead.
Image: DJI Daily Chart
Along with this, 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 higher. Besides, the Bollinger Bands middle band 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 and the Bollinger Bands middle band in the days ahead.
To conclude, as long as the price residing over the dynamic level of 20 EMA, the bias will remain bullish. A daily close is needed to identify the definite momentum in the coming days.