Dow Jones Industrial Average bulls have regained momentum after bouncing from $30,500 to $30,600 support level. Dow Jones Industrial Average bounced higher from $30,600 psychological price area. What is next? What are the charts and technical indicators are saying? Read more to find further insights into today’s DJI Technical Analysis.
March 8, 2021, AtoZ Markets – Dow Jones Industrial Average is currently trading around $31,500 price area and trying to recover higher. After rejecting $32,000 to $31,800 key resistance area, the bears pushed the price downside quite impulsively. However, failed to break below $30,600 to $30,500 support area and had a daily bullish engulfing bar close. As per the current price action context, the price may face strong resistance around $31,800 to $32,000 price area again in the coming days.
Moreover, the Dow Jones Industrial Average climbed 1.85%, at the close in NYSE last week. However, the greatest performer on Friday on the Dow Jones Industrial Average was Chevron Corp. It has risen by 4.31% or 4.50 points to exchange at 109.00 at the end. On the contrary, the most exceedingly terrible performers of the session were Boeing Co. It has fallen by 0.66% or 1.49 points to exchange at 223.22 at the end.
Dow Jones Industrial Average Bounced Higher as the Investors Are Still Optimistic
Dow Jones is currently residing near $31,500 price area and trying to push the price upward. Moreover, the price also broke over the dynamic level on the intraday chart.
Image: DJI 4 Hour Chart
According to the 4-hour chart, Dow Jones Industrial Average bounced higher and currently trading around $31,500 price area. As per the current scenario, if the bulls push the price further higher towards $31,800 to $32,000 price area and reject with an impulsive bearish candle close, the bears may regain momentum and decline towards $30,600 to $30,500 price area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may hold the price 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. Along with this, the MACD lines are currently residing near the 0.00 level and gradually sloping downside. It indicates that the price is losing the bullish momentum slowly.
DJI Still Holding the Bullish Bias
According to the daily chart, Dow Jones Industrial Average bounced higher as the overall bias is still bullish. As per the current price action, if the price pushes higher and breaks above $31,800 to $32,000 key resistance area, the bulls may sustain the bullish trend towards $32,800 to $33,000 price area in the coming days. Alternatively, if the price rejects $31,800 to $32,000 key resistance with a daily bearish candle, the bears may regain momentum and push the price down towards $30,600 to $30,500 price area again in the days ahead.
Image: DJI Daily Chart
In addition, the price broke above the dynamic level of 20 EMA, and the Bollinger Bands middle band with an impulsive bullish candle. It indicates that the bulls may sustain the bullish trend further in the process. However, the Bollinger Bands’ upper band may work as strong resistance to push the price down in the coming days.
To conclude, after an extended period of volatility, Dow Jones may continue its bullish bias further and may hit an all-time high. A daily close is needed to identify the definite momentum in the days ahead.