Hello, this is Itai Levitan providing a technical analysis for ForexLive.com on the DJI (Dow Jones Industrial Average) index. We are currently observing an interesting situation where bulls and bears are contesting. From the opening gap, it appears the bulls have a slight advantage, but this could be temporary.
- Touch Points: We have observed one touch point on the lower band and three on the upper band, indicating significant levels of resistance and support.
- Triangle Formation: A triangle has formed with a blue line at the bottom and a red line at the top. Previously, we saw a bounce that reached the middle of this channel.
- Potential Movements: We need to monitor whether there will be another visit to the bottom band, potentially leading to a breakdown, a retest, and further decline.
- Bear Flag: The larger channel formation is resembling a bear flag, which could spell trouble.
Critical price levels for DJI:
- Bulls: If we close above 38,800 today, it suggests that bulls may continue to push the market higher, potentially reaching 39,500, though not necessarily in a straight line.
- Bears: Conversely, a close below 38,800 would prompt caution. Particularly, a move to below 38,675 could signal a bearish case, prompting a reevaluation of long positions and a focus on the 38,670 area as a critical juncture.
Summary of the Dow Jones technical analysis
- A close above 38,800 favors the bulls, suggesting potential upward momentum.
- A close below 38,675 favors the bears, indicating potential for a downturn.
- Actionable Insight: Traders should trade at their own risk and return to ForexLive.com for additional perspective.
This analysis highlights the current market dynamics between the bulls and bears, emphasizing the importance of key levels in determining the market’s direction. Watch the video above and always trade the Dow Jons at your own risk only.