Dow Jones Industrial Average Nose Dive Below $30,200 Price Area – What Next?


Dow Jones Industrial Average closed at low to $29,971 price area, after rejecting $31,200 to $31,000 key level. Dow Jones Industrial Average nose dive below $30,200 price area. What is next? Bears to sustain the bearish pressure further in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s DJI Technical Analysis. 

February 1, 2021, | AtoZ MarketsDow Jones Industrial Average is currently trading around $30,000 price area and trying to push downside. The bulls failed to break over $31,000 to $31,200 price area, after bouncing from $30,000 to $30,200 support level. As per the current price action, the price may face strong support around $30,000 to $30,200 price area in the coming days.

In addition, the Dow Jones Industrial Average declined by 1.39% to hit another 1-month low, while the S&P 500 index has fallen by 1.32%, and the NASDAQ Composite index declined by 1.38%, at the end of the NYSE. Moreover, the session’s greatest performers on the Dow Jones Industrial Average were McDonald’s Corporation. It has risen by 1.10% or 2.27 points to exchange at 209.09 at the end. On the contrary, The session’s most exceedingly awful performers were 3M Company. It has fallen by 3.50% or 6.42 points to exchange at 177.00 at the end.

Dow Jones Industrial Average Nose Dive as the U.S. Stocks Lower at the Close

Dow Jones is currently residing near $30,000 price area and trying to sustain the bearish pressure further. However, the price also broke below the Kumo Cloud on the intraday chart.

Dow Jones Industrial Average Nose Dive

Image: DJI 4 Hour Chart

According to the 4-hour chart, Dow Jones Industrial Average nose dive and currently trading around $30,000 price area. As per the current price action, if the price bounces upside from $30,000 to $30,200 support level with an impulsive bullish candle, the bulls may regain momentum and retrace towards $30,500 to $30,600 price area in the coming days. So, if the price retraces towards $30,500 to $30,600 price area and rejects, the bears may regain momentum and decline towards $30,200 to $30,000 price area again in the process.

In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price upside as a mean reversion. Besides, the Kijun line and the Tenkan may work as a confluence of the dynamic level in the days ahead.

DJI May Sustain the Bearish Pressure

According to the daily chart, Dow Jones Industrial Average nose dive as the bears are optimistic. As per the current scenario, if the price retraces towards $30,500 to $30,600 price area and rejects with a daily bearish candle, the bears may continue the bearish pressure towards $30,200 to $30,000 price area as a first target. The second target will be $29,200 to $29,000 event-level if the price breaks below $30,200 to $30,000 price area in the coming days.

Dow Jones Industrial Average Nose Dive

Image: DJI Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may act as strong resistance to push the price downside. Also, the MACD lines are currently residing above the 0.00 level and had a bearish crossover. It indicates that bears may continue the bearish bias further in the days ahead.

To conclude, Dow Jones may sustain the bearish pressure further, but the price required an upside retracement. A daily close is required to identify the definite momentum in the process. 

 

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