The index slumped 296 points to 24,688 during trading on Friday and has continued the bearish trend on Monday. What can traders expect next? Analysts at ADS Securities shared their Dow Jones index technical analysis.
29 October, ADS Securities – Stocks extended their recent see-saw performance with a sharp pullback during trading on Friday. The major averages regained some ground after an early sell-off but still ended the day significantly lower.
The Dow slumped 296 points to 24,688. The pullback on Wall Street came amid a negative reaction to corporate results from some big-name companies after upbeat results from companies like Microsoft (MSFT) and Twitter (TWTR) contributed to the jump on Thursday.
Economic data may attract attention this week, with the Labor Department scheduled to release its closely watched monthly jobs report next Friday. Traders are also likely to keep an eye on reports on personal income and spending, consumer confidence, labor productivity and costs, manufacturing activity, and international trade.
Dow Jones Index Technical Analysis
The DJIA ended the week -2.97% lower at 24688 as prices missed to decisively move beyond resistance levels. However the index also found buyers at key support levels.
This horizontal price action going back and forth between support and resistance lines is expected to continue on for the next few days. However we are still trading below the trendline on the hourly chart, this confirming the bearish trend for the short term.
The RSI looks mixed to bullish signaling a bullish move and a retest of the 24795 – 24900 resistance levels.
Support: 24444 –
Resistance: 24795 25000
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