In the early American session, the Dow Jones Industrial Index, #INDU, is trading at the 61.8% Fibonacci retracement level, and below the 21 SMA and the 200 SMA, with a pronounced bearish bias and an support immediate in the 2/8 of murray.
The Dow Jones has broken the 33,971 level. This is a sign that the downtrend could continue. However, it has strong support in the 33.593 area. This level will give it a technical rebound and a good opportunity to buy.
The technical reading of the eagle indicator shows that the Dow Jones is oversold, which could be an attempt to break above the 200 EMA zone, for a new bullish wave.
Our recommendation is to wait for a bounce at 33560, to buy, with targets at 34,000 and up to 34,300, there the 21 SMA is located, and it acts as a dynamic resistance.
Conversely, a breakout and consolidation below 33560, we should sell to the May 13 low around 33,300.
Support and Resistance Levels for May 19 – 20, 2021
Resistance (3) 34,259
Resistance (2) 34,082
Resistance (1) 33,746
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Support (1) 33,569
Support (2) 33,365
Support (3) 33,233
