The Dow Jones Industrial Average (DJI) continues its recovery efforts after a strong decline that began in early April. Short-term charts show the beginning of a price equilibrium and an attempt to regain upward momentum, albeit with some caution. In this technical analysis, we review price action, technical indicator signals, and key levels to monitor closely during the upcoming trading sessions.
DJI Live Overview
- Current Price: 39,625.9
- Session High: 39,845.9
- General Trend: Sideways to Bullish
The index is consolidating around the 39,600 levels after a rebound from the weekly low around 38,900, indicating attempts at a positive correction amid improving technical momentum indicators.
Dow Jones Technical Analysis | Reading Indicators and Averages
Trend:
- The general trend remains in an upward correction mode after a previous strong decline.
- Short-term moving averages (20-50) have begun to cross upwards, with a positive bias.
Technical indicators:
- MACD: Showing positive bars indicating continued positive momentum, but it has begun to decline slightly, requiring careful monitoring.
- Stochastic Oscillator: Moving near the 58 level, reflecting a neutral zone with a bullish bias, it may continue to support the positive trend in the short term.
Price behavior:
The index rebounded strongly from the 38,900 support area and tested the 40,372 resistance level, but failed to break it, creating a trading range between 39,200 and 39,960.
Dow Jones Future Outlook
The Dow Jones is expected to continue trading sideways between 39,203.9 and 39,961.0 unless a clear breakout or penetration occurs. The bullish scenario will remain valid as long as the price is above 39,203.9, while a break below this level could retest the 39,961.0 area.
Positive Scenario:
- Buy after a steady break of 39961.0, with targets at 40372.0 and then 40430.2.
Negative Scenario:
- Sell if 39203.9 is broken, with targets at 38901.0 and then 38860.6.
Trading strategies based on Buy/Sell levels
| US30 | In case of buying | in case of selling |
| Entry point | 39961.0 | 39203.9 |
| Target Point 1 (TP1) | First resistance: 40372.0 | First support: 38901.0 |
| Target Point 2 (TP2) | Second resistance: 40430.2 | Second support: 38860.6 |
| Stop Loss (SL) | 39203.9 | 39961.0 |
The DJI is showing technical signals that support the possibility of a continued upward trend in the short term, provided the resistance level of 39961.0 is breached. If the index holds below this level, the movement will remain sideways, with a possible limited downward trend. Medium-term traders can wait for a confirmed breakout to clearly define the next trend.
