Tuesday, June 25, 2019
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Technical Analysis – Dow Jones eases inside Ichimoku cloud

Dow Jones 30 index (US 30) eases inside Ichimoku cloud; fails to improve.

The Dow Jones 30 index is trading below the six-month high of 26,712, struggling within the Ichimoku cloud and the between the 50- and 200-simple moving averages (SMA). The index is on the back foot and the technical indicators suggest that the market could ease a little bit in the short-term; the MACD is flattening in the negative zone, while the stochastic is losing momentum.

In case of a correction lower, preliminary support may be initially found near 25,500 which is where the 23.6% Fibonacci retracement level of the upleg from 21,596 to 26,712 and the 200-day SMA are currently located. Falling towards 25,220, the medium-term picture would shift from bullish to neutral as well as touch the 38.2% Fibonacci of 24,754.

On the other hand, if the bulls take control, immediate resistance could come around the 50-day SMA currently at 26,072. If buyers pierce above that, the next obstacle may be the six-month high of 26,712, where the rally topped on April 24.

Summarising, in the near-term, the momentum indicators point to a possible bearish retracement and if there is a drop below 25,220, this could open the door for further losses.


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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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