Dow Jones Industrial Average bears have regained momentum after rejecting $31,000 to $31,200 key level. Dow Jones Industrial Average dropped below $31,000 psychological area. Is this the end of the bullish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s DJI Technical Analysis.
January 18, 2021, | AtoZ Markets – Dow Jones Industrial Average is currently trading around $30,800 area and trying to decline further. After bouncing from $30,000 to $30,100 support level, the bulls pushed the price upward quite impulsively, but failed to break over $31,000 to $31,200 area. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the daily chart in the coming days.
Moreover,U.S. stocks were negative after the end on Friday, as misfortunes in the Oil and Gas, Industrials areas, and Basic Materials drove shares lower. At the end of NYSE, the Dow Jones Industrial Average has lost around 0.30%, while the S&P 500 index declined by 0.44%, and the NASDAQ Composite index dropped by 0.64%.
Dow Jones Industrial Average Dropped Below as the Price Faced Strong Resistance
Dow Jones is currently residing near $30,800 area and trying to push downward. However, the price is still residing above the dynamic level of 20 EMA on the daily chart.
Image: DJI 4 Hour Chart
According to the 4-hour chart, Dow Jones Industrial Average dropped below and currently trading around $30,800 area. As per the current price action, if the price can have an impulsive bearish candle close below the dynamic level, the bears may sustain the bearish pressure towards $30,400 to $30,300 support area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing near the price. It may work as strong resistance to push the price down if the price breaks below it in the process. Also, the MACD lines are currently residing above the 0.00 level and had a bearish crossover. It indicates that bears may sustain the bearish pressure further in the coming days.
DJI Bulls Are Still Optimistic
According to the daily chart, Dow Jones Industrial Average dropped below and currently residing near $30,800. As per the current scenario, if the price can have an impulsive bullish candle close above the dynamic level, the bulls may continue the bullish trend towards $31,000 to $31,200 area as a first target. The second target will be $31,800 to $32,000 key area.
Image: DJI Daily Chart
In addition, 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 act as strong support to push the price upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead.
To conclude, the price has retraced towards the dynamic level and had a daily close above it. Another daily close is required to identify the definite momentum in the coming days.