Dow Jones bears still holding the bearish momentum below $31,300 to $31,200 key resistance area. Dow Jones Industrial Average sustains below $31,200 key price area. Can bulls regain momentum 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.
January 25, 2021, | AtoZ Markets - Dow Jones Industrial Average is currently trading around $31,000 price area and trying to push downside. After breaking over $30,500 to $30,600 price area, the bulls pushed upward quite impulsively, but failed to continue the bullish bias above $31,200 to $31,200 key area. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the intraday chart in the days ahead.
Moreover, U.S. stocks were blended after the end of Friday, as makings in the Utilities, Telecoms and Technology areas drove shares higher. While losses in the Gas and Oil, Financials and Consumer Services areas drove shares lower. However, Home Depot Inc (NYSE:HD) is the best performers of the session on the Dow Jones Industrial Average. Which has risen by 2.14% or 5.97 points to exchange at 285.02 at the end. On the other hand, International Business Machines (NYSE:IBM) is the most noticeably terrible performers of the session. Which has fallen by 9.88% or 13.01 points to exchange at 118.64 at the end.
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Dow Jones Industrial Average Sustains Below as the U.S. Stocks Mixed at the Close Last Week
Dow Jones is currently residing near $31,000 price area and trying to decline further. However, the bulls are still holding the bullish bias above the dynamic level on the daily chart.
Image: DJI 4 Hour Chart
According to the 4-hour chart, Dow Jones Industrial Average sustains below and currently trading around $31,000 price 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 further towards $30,600 to $30,500 price area in the process.
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 continue the bearish momentum further if the price can break below the dynamic level in the coming days. Besides, the Stochastic Oscillator lines are currently residing near the overbought level 80 and had a bearish crossover. It indicates that bears may sustain the bearish pressure further in the process.
DJI May Retrace Towards the Dynamic Level
According to the daily chart, Dow Jones Industrial Average sustains below, but the overall bias is still bullish. As per the current scenario, if the price retraces down towards $30,600 to $30,500 support area and bounced upside with an impulsive bullish candle, the bulls may continue the bullish trend towards $31,200 to $31,300 price area as a first target. The second target will be $31,900 to $32,000 price area in the process.
Image: DJI Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upward. Along with this, the MACD lines are currently residing above the 0.00 level and had a bearish crossover. Besides, the histogram has created a bearish divergence. Both indicate that bears may retrace downside before continuing the bullish trend further in the coming days.
To conclude, as long as the price residing over $30,500 to $30,600 support level, the bias will remain bullish. A daily close is required to identify the definite momentum in the days ahead.
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