In the early American session, the industrial index of the Dow Jones, #INDU, is trading above the SMA of 21, after having fallen to the low of 32,900. Now the index is located at 33,770, having recovered from the sharp fall of the last week and early this week.
Trading on Wall Street is likely to be quiet for Tuesday as investors await Powell's testimony in Congress as he will provide US lawmakers on Capitol Hill with an update on the central bank's support for the economy during the pandemic.
The Dow Jones is now trading with a bullish bias, having found support in the 6/8 zone of murray and the SMA of 21. Both are located at the same level of 33,593. Therefore, any bounce off this level will be a good opportunity to buy.
In the chart, you can see the Dow Jones' downtrend channel. We notice that it has fallen to the bottom of the channel, and from that level it has been rebounding.
Higher at 34,257, there is the 200 EMA that acts as strong resistance and could be a short-term target only if #INDU sustains above 6/8 murray.
Our recommendation is to buy at the current price levels, or wait for a technical bounce at 33,593 with targets at 34.257. The eagle indicator is showing a bullish signal.
Support and Resistance Levels for June 22 – 23, 2021
Resistance (3) 34,511
Resistance (2) 34,279
Resistance (1) 34,150
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Support (1) 33,619
Support (2) 33,467
Support (3) 33,319
