The Dow Jones Industrial Average has experienced sharp declines in recent sessions, affected by profit-taking on Wall Street, as well as negative data on US consumer confidence and personal expenditures (PCE) prices, which showed a slowdown in inflation, reviving concerns about a slowdown in US economic growth.
In addition, anticipation of the upcoming Federal Reserve meeting is heightening caution in the markets, while some major corporate earnings results have supported the index in the short term.
Technical Overview
The index has been trading in a downtrend since breaking the 42400 level.
Recent recovery attempts have been made, but they are facing technical resistance at 41970.
The price is currently between 41820 (support) and 41970 (resistance).
General Trend: Short-term bearish.
Immediate Support: 41650 – 41510.
Nearby Resistance: 41970 – 42200.
Technical Indicator Analysis
Moving Averages (EMA):
The price remains below the 100 and 200 averages, reinforcing the negative outlook.
The 50 EMA has turned horizontal, indicating a weak current trend.
MACD Indicator:
Negative momentum continues, despite attempts to consolidate above zero.
There are signs of a loss of selling power, but it has not yet turned into a real uptrend.
Stochastic Indicator:
The indicator is moving within the 25-30 range, indicating a possible upward correction, but it remains below the 50 lines.
Expected Scenarios
Bearish Scenario:
A break of 41650 will open the way for a test of the key support at 41510.
A close below 41510 will push the price towards 41200.
Bullish Scenario:
A break of 41970 could lead to a corrective rise towards 42200.
The overall trend will remain negative unless a close is reached above 42400.
Trading strategies based on Buy/Sell levels
| US30 | In case of buying | in case of selling |
| Entry point | 41826.0 | 41669.3 |
| Target Point 1 (TP1) | First resistance: 41971.3 | First support: 41514.0 |
| Target Point 2 (TP2) | Second resistance: 42030.0 | Second support: 41450.0 |
| Stop Loss (SL) | 41669.3 | 41826.0 |
The Dow Jones Industrial Average is in a corrective break within a downtrend. Current movements are considered a test of previous resistance levels.
Technically, the overall trend of the index remains negative as long as the key resistance levels are not breached. Price fluctuations near current support areas reflect a state of anticipation in the market, which makes it necessary to link technical analysis to the current economic context.
Markets currently tend to move within narrow ranges awaiting external catalysts (such as economic data or political/monetary statements), making investment decisions necessitate combining accurate technical analysis with a deep understanding of the macroeconomic context.
