Choose your trading platfom

Chart of the week – Revival of positive momentum for Dow Jones Industrial Average

Wall Street

Chart of the week – Dow Jones Industrial Average (US 30)

Revival of positive momentum for Dow Jones Industrial Average (US 30)

Short-term technical analysis (1 to 3 weeks)

(click to enlarge chart)
  • Last week’s decline of -4.6% seen in the US 30 Index (proxy for the Dow Jones Industrial Average) from its 28 June minor swing high to 30 June low has managed to stall at a minor ascending trendline support from 17 June 2022 low. Thereafter, its price action has managed to stage a rebound of +2.15% and recorded a positive daily close on last Friday, 1 July 2022 that snapped the prior three days of “lower lows”.
  • Watch the 30,330 key medium-term pivotal support and a break above 31,880 may see a further potential up move towards the next resistances at 32,580 and 33,300 in the first step within a corrective rebound structurethat may last for 1 to 3 months.
  • On the other hand, a break with a 4-hour close below 30,330 invalidates the recovery scenario for a continuation of the drop to retest the major support of 29,650/530.
  • Positive elements; the 4-hour RSI oscillator has managed to inch higher above the 50% level which indicates a revival of short-term bullish momentum, the -4.6% decline seen on the price actions of US 30 Index from its 28 June minor swing high has managed to pause at the 61.8% Fibonacci retracement of prior short-term up move from 17 June 2022 low to 28 June 2022 high which increases the odds of the emergence of another short-term up move sequence based on Elliot Wave/fractal analysis.

Disclaimer: CMC Markets is an order execution-only service. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.