Dow Jones US30 Technical Analysis: Bearish Trend

Dow Jones US30 Technical Analysis: The Dow Jones Industrial Average (DJI) has recently experienced a sharp decline, punctuated by weak rebounds, confirming the continued general selling pressure. Recent movements indicate a failure to maintain upward gains, placing the market in a technically cautious zone, especially with the decline in momentum after each upswing.

Dow Jones US30 Technical Analysis: Daily Price Data

• Daily Opening Price: 37,789.9
• Daily High: 37,985.9
• Daily Low: 37,762.4
• Current Price: 37,939.3

Technical Analysis

Using Indicators and Averages

General Trend

The general trend remains bearish on the H1 chart despite recent recovery attempts, with lower highs and lower lows recurring, supporting continued selling control. Moving Averages

• EMA 20 and EMA 50: The price is currently trading around these averages, with the averages sloping downwards, indicating increasing pressure with each bounce attempt.
• EMA 100 and 200: The price remains below these averages, reinforcing the negative outlook for the overall trend.
• Note: A previous bearish crossover is still active, and the current convergence may create selling opportunities.

MACD Indicator

• The MACD indicator is approaching the neutral zone after a period of positive momentum, showing signs of weakness in the recent upward momentum.
• The histogram is declining, indicating a possible return of selling momentum.

Stochastic Indicator (9, 2, 5)

• The indicator is at the 55 level, i.e., in the middle of the range, indicating the possibility of fluctuations between support and resistance.
• No signs of oversold conditions have yet emerged, reflecting relative neutrality in the short term.

Technical Forecasts and Possible Scenarios

Bearish Scenario (Likely):

• Failure to surpass 38515.0 will push the price to test 37475.1 again.
• A break of 37475.1 will trigger a new downward wave toward 36984.0, especially if accompanied by strong selling momentum.

Alternative Bullish Scenario:

• A break of 38515.0 and a close above it will push the price to test the resistance at 38919.4.
• Consolidation above 38919.4 may restore positive momentum and change the trend in the short term.

Trading strategies based on Buy/Sell levels

Current analysis of the Dow Jones Index shows a weak market momentum, experiencing clear selling pressure on each rebound. With no signs of buying power yet, selling opportunities remain favorable from resistance levels, with caution against a break above support at 37475.1, which could accelerate the price decline toward 36984.0.