Dow Jones Industrial Average Strikes Over $31,000 Key Level – What Next?


Dow Jones Industrial Average has become non-volatile after bouncing from the dynamic level. Dow Jones Industrial Average strikes over $31,000 psychological key level. What is next? Bull to continue 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 11, 2021, | AtoZ MarketsDow Jones is currently trading around $31,100 price area and trying to recover higher. After bouncing from $30,000 to $30,200 support level, the bulls pushed the price higher and hit an all-time high of $31,200 price area. As per the current price action, the price may face strong resistance around $31,200 to $31,000 area in the coming days.

Moreover, U.S. Stocks blended on last week close, as gains in the Utilities, Consumer Goods, and Technology areas drove shares higher while losses in the Telecoms, Industrials, and Basic Materials areas drove shares lower. Besides, At the shutdown in NYSE, the Dow Jones Industrial Average dropped by 0.06%, while the S&P 500 index gained 0.26%, and the NASDAQ Composite index acquired 0.61%.

However, the best performers of the last week on the Dow Jones Industrial Average were Coca-Cola Co (NYSE: KO), which climbed 1.88% or 0.94 points to exchange at 50.90 at the end. Meantime, Amgen Inc (NASDAQ: AMGN) was rose by 1.61% or 3.76 points to 237.78, and McDonald’s Corporation (NYSE: MCD) gained 1.71% or 3.62 points to close at 215.60 in late exchange.  On the contrary, the most noticeably terrible performers of the session were 3M Company (NYSE: MMM), which down by 2.14% or 3.62 points to exchange at 166.09 at the end. Verizon Communications Inc (NYSE: VZ) was declined by 1.34% or 0.79 points to 57.74, and Intel Corporation (NASDAQ: INTC) dropped by 1.69% or 0.88 points to close at 51.31.

Dow Jones Industrial Average Strikes Over Since Last Week’s Performance Ends Well

Dow Jones is currently residing near $31,100 area and trying to recover upside. However, the price had a bearish engulfing close below $31,200 to $31,000 price area on Friday.

Dow Jones Industrial Average

Image: DJI 4 Hour Chart 

According to the 4-hour chart, Dow Jones Industrial Average strikes over and currently trading around $31,100 price area. As per the current scenario, if the price can have an impulsive bearish candle close below $31,200 to $31,000 price area, the bears may decline towards $29,500 to $29,200 area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upward. So, the bears may regain momentum if the price can break below the dynamic level in the process. Also, the MACD lines are currently residing over the 0.00 level and sloping down gradually. Besides, the histogram has created a bearish divergence. Both are indicating that bears may regain momentum in the days ahead.

DJI Bulls Are Still on the Market

According to the daily chart, Dow Jones Industrial Average strikes over as bulls are still optimistic. As per the current price action, if the price can have an impulsive bullish candle close above $31,000 to $31,200 price area, the bulls may recover higher towards $31,800 to $32,000 price area in the process. On the contrary, if the price can have an impulsive bearish candle close below $31,200 to $31,000 price area, the bears may regain momentum and decline towards $29,500 to $29,200 price area in the days ahead.

Dow Jones Industrial Average

Image: DJI Daily Chart

Moreover, 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 may retrace downside at least towards the dynamic level before continuing the bullish trend further. A daily close will help to identify the definite momentum in the coming days.  

 

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