In a 4-hour chart, the Dow Jones industrial index, #INDU, is trading within a technical pattern of an ascending wedge. Since August 25, it has been oscillating within this channel. The downward pressure around 35,500 has prevented a strong bullish acceleration.
You can see on the chart the Dow Jones is now trading below the SMA of 21. This is a sign that the index could fall to the support of the technical pattern and from there it could rise again to the top of the channel.
The key level of 35,380 is a key point. As long as the index remains below this level, it could accumulate the presence of sellers, so the price could fall to the 6/8 support of murray. If the bearish force prevails, the index could fall to the EMA of 200.
Last week's performance of the Dow Jones was driven by crude oil prices that reached the psychological level of 70.00 due to the weakness of the US dollar and negative data from crude inventories.
For example, stocks like Chevron had an increase of 2.96%. Walgreens Boots Alliance gained 2.96%, Caterpillar Inc rose 2.09%. This data was the underlying engine for the Dow Jones. The index is likely to continue trading within a range for the next few days.
The main trend is bullish based on the 4-hour chart. However, the weekly close below the 21 SMA could be a sign of the trend reversal. Trading through 35,300 could break the support of the technical pattern and it will be the start of a downtrend.
A daily close below the psychological level of 35,000 and below the EMA of 200 will change the oberall trend downwards. It could initiate a sequence of lows to 5/8 murray located at 34,765.
Our outlook will be bearish as long as the index is trading below the 21 SMA. The eagle indicator is showing a bearish signal.
Support and Resistance Levels for September 06 - 07, 2021
Resistance (3) 35,616
Resistance (2) 35,476
Resistance (1) 35,380
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Support (1) 35,201
Support (2) 35,104
Support (3) 34,964
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Trading tip for DOW JONES #INDU for September 06 - 07, 2021
Sell below 35,380 (SMA 21), with take profit at 35,243 and 35,064, stop loss above 35,440.
