The Down Jones #INDU industrial index follows 30 of the largest companies in the United States and is considered a barometer of the general performance of the country's stock market and, therefore, of the North American economy. We are seeing strength and the bullish prospects, defying strong resistance at 34,375.
In the early American session, the Dow #INDU is trading above the 21 SMA and breaking the strong 8/8 Murray resistance around 34,375. After having broken the descending wedge, it is expected to continue being bullish until it reaches its targets of 34,756.
On several occasions, the Dow Jones, has tried to overcome 34,375 and has fallen back up to the EMA of 200. It has made several attempts to stay above this level. We expect it to remain above 8/8 of a murray for the Dow Jones to go up to 34,750 and up to 35,000.
On the other hand, if the Dow Jones fails to consolidate above 34,375, there could be a pullback towards the 34,110 zone, the 200 EMA level. At this level, there could be a technical rebound and it will give us an opportunity to buy with targets at 34,375 and 34,750.
The technical reading of the eagle indicator is showing a bullish signal for the Dow Jones. It could be a good opportunity to buy, whenever we notice a retracement at the support level, and while the Dow #INDU remains above the EMA of 200, the bias will remain bullish.
The investor sentiment report for today shows that there are 56% of operators who are selling the Dow Jones #INDU. This is a sign that the Dow, in the short term, could trade at levels of 34,750 and up to 35,000.
Support and Resistance Levels for May 27 - 28, 2021
Resistance (3) 34,626
Resistance (2) 34,542
Resistance (1) 34,438
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Support (1) 34,354
Support (2) 34,250
Support (3) 34,110
