Dow Jones Industrial Average Sustains Below $31,500 Price Area - Will Recover Higher?


Dow Jones has become volatile after breaking over $31,100 to $31,200 price area. Dow Jones Industrial Average sustains below $31,500 key level. Will DJI recover further higher in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s DJI Technical Analysis. 

February 15, 2021, | AtoZ Markets - Dow Jones Industrial Average is currently trading around $31,460 price area and trying to push upside. After bouncing from $29,900 to $30,000 price area, the bulls have regained momentum and pushed the price upside quite impulsive, and hit a record high of $31,540 price area. As per the current price action, the price may face strong resistance around $31,500 to $31,600 price area in the coming days.

Moreover, U.S. stocks performance mixed after the end on Friday, as gains in the Gas and Oil, Healthcare and Industrials areas drove stocks higher while misfortunes in the Telecoms, Utilities, and Consumer Goods areas drove shares downward. However, the greatest performers on Friday on the Dow Jones Industrial Average were JPMorgan Chase and Co, which has climbed by 1.24% or 1.73 points to exchange at 141.00 at the end. On the other hand, the most noticeably terrible performers of the session were Walt Disney Company, which has declined by 1.73% or 3.31 points to exchange at 187.60 at the end.

Dow Jones Industrial Average Sustains below as the U.S. Stocks Mixed at the Close Last Week

Dow Jones is currently residing near $31,460 price area and trying to recover higher. However, the price is still residing over the dynamic level on the intraday chart.

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Image: DJI 4 Hour Chart

According to the 4-hour chart, Dow Jones Industrial Average sustains below and currently trading around $31,460 price area. As per the current price action, if the price recovers higher and faces resistance around $31,500 to $31,600 price area, the bears may regain momentum and decline towards $31,200 to $31,100 price area as a first target. The second target will be $30,000 to $29,900 support area if the price can break below $31,200 to $31,100 price area in the coming days.

Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upward. However, the bears may regain momentum if the price can break below the dynamic level in the days ahead. Along with this, the Stochastic Oscillator lines are currently residing above the overbought level 80 and had a bearish crossover. It indicates that the bears may regain momentum in the process.

DJI May Revert Back to the Mean

Image: DJI Daily Chart

According to the daily chart, Dow Jones Industrial Average sustains below, but the overall bias is still bullish. As per the current price action, if the price can have a daily bearish candle close below $31,600 to $31,500 price level, the price may retrace towards $31,200 to $31,100 support area in the process. So, if the price retraced towards $31,200 to $31,100 support area and bounced upward with a daily bullish candle, the bulls may recover higher towards $31,500 to $31,600 price area as a first target. The second target will be $31,900 to $32,000 key area if the price can break over $31,500 to $31,600 price area in the days ahead.

In addition, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down as a mean reversion. Also, the MACD lines are still residing over the 0.00 level. It indicates that the bulls are still residing on the market may continue the bullish trend further in the coming days.

To conclude, as long as the price residing over $31,100 to $30,000 price area, the bias will remain bullish. An impulsive daily close is required to identify the definite momentum in the coming days. 

 

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