Dow Jones Industrial Average Bears Regained Momentum – What Next?


Dow Jones has become impulsive and non-volatile after breaking below $34,500 to $34,400 support level. Dow Jones Industrial Average bears have regained momentum. What is next? Bears to continue further downside in the days ahead? What are the charts and technical indicators are saying? Read more to find further insights into today’s DJI Technical Analysis. 

June 24, 2021, | AtoZ Markets – Dow Jones Industrial Average is currently trading around $33,875 price area and trying to decline further. After breaking below $34,500 to $34,400 psychological support level, the bears pushed the price down and broke below $33,700 to $33,500 intraday support level. Afterward, the bulls managed to regain momentum and pushed the price over $33,500 to $33,700 support level again. As per the current price action, the price may face strong resistance at the dynamic level of 20 EMA on the intraday chart in the coming days.

Dow Jones Industrial Average Broke Below the Significant Event Level

DJI is currently residing near $33,875 price area and trying to push downside. However, the price also broke below the dynamic level of 20 EMA on the daily chart.

Dow Jones Industrial Average

Image: DJI 4 Hour Chart 

According to the 4-hour chart, Dow Jones Industrial Average is currently trading around $33,875 price area and trying to push down. As per the current price action, the price may decline towards $33,700 to $33,500 price area in the process. So, if the price can break below $33,700 to $33,500 support area with an impulsive bearish candle, the bears may sustain the bearish pressure towards $33,000 to $32,800 price area in the coming days. Alternatively, if the price bounced upside from $33,500 to $33,700 support level with an impulsive bullish candle, the bulls may push the price higher towards $34,400 to $34,500 price area in the days ahead.

In addition, the dynamic level of 20 EMA is currently residing above the price, which is already working as strong resistance. Along with this, the Stochastic Oscillator lines are currently residing below the overbought level 80 and gradually sloping downward. It indicates that the bears may continue further downside in the process.

DJI May Continue Further Downward

According to the daily chart, Dow Jones Industrial Average bears have regained momentum and currently trading around $33,875 price area. As per the current scenario, if the price can have an impulsive daily bearish candle close below $34,200 to $34,000 price area, the bears may sustain the bearish pressure towards $33,500 to $33,400 price area as a first target. The second target will be $33,000 to $32,800 price area if the price can break below $33,500 to $33,400 support level in the process.

Dow Jones Industrial Average

Image: DJI Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing over the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead. However, the Kumo Cloud is still holding the price as strong support, which indicates that the overall bias is still bullish.

To conclude, after an impulsive bearish momentum, the price has successfully retraced higher. As the overall momentum is bearish, there is a high chance that the bears may continue further downward in the coming days. 

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