Wednesday, July 17, 2019
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Technical Analysis – Dow Jones 30 opens with a gap down

Dow Jones 30 index (US 30) opens with a gap down; flirts with 4-month lows.

The Dow Jones 30 index futures opened with a negative gap today below the 38.2% Fibonacci retracement level of the upward movement from the 16-month low of 21,596 to the 6-month high of 26,712 near 24,754. The index is on the back foot, recording more than four-month low (24,606), and the technical indicators suggest that the market could ease a little bit more in the short-term; the MACD is falling in the negative zone, while the RSI looks to be losing momentum near the oversold area.

In case of a correction lower, major support may be initially found near 24,154 which is where the 50.0% Fibonacci is currently located. Falling lower towards the 61.8% Fibonacci of 23,540, the medium-term picture would shift from bullish to neutral, while a drop under this significant region could endorse a bearish structure.

On the other hand, if the bulls take control and surpass 38.2% Fibonacci mark, resistance could come around 25,220 and the 200-simple moving average (SMA) near the 23.6% Fibonacci of 25,500.

Summarising, in the near-term, the momentum indicators point to a possible bearish movement if the price fails to pare today’s gap.


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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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