The Industrial Index Dow Jones 30 (#INDU) made a very strong fall of more than 1,000 points in less than 30 hours. Since yesterday, when it reached the zone of 34,680 just at the level of the SMA of 21, it could not overcome this zone and changed direction. So, the index continues its fall so far in the Asian session. At the moment, it is trading at 33,643, it is approaching a key support of -2/8 of murray.
The three main Wall Street indexes, Nasdaq 100, Dow Jones and SP 500, closed lower on Thursday and posted its worst quarterly gains in at least 12 months. The monthly chart of the #INDU (Dow Jones) closed the month of September with a bearish candle accumulating a fall of more than 1,580 points.
According to the daily chart, the Dow Jones is approaching the level of -2/8 murray and this line represents a point of extremely oversold market. The fall is expected to moderate and the index could consolidate around 33,593 (-2/8). A technical bounce around this zone will be a good opportunity to buy with targets at 33,984 (-1/8).
On September 20, we also observed that the Dow Jones dropped just to this level of -2/8 of murray and from this point it made a technical rebound. So we believe that in the coming days as long as it remains above this level it could be a good point to buy.
On the contrary, a break and consolidation below -2/8 of murray is expected that the bearish pressure will take it to fall to the level of the 200 EMA located at 33,313. It will be the last key support and a good point to buy. Therefore, we have these 2 levels to take a good purchase entry point. With a daily close below the 200 EMA, we must avoid buying.
We believe that the Dow Jones may have a recovery in the next few days as the eagle indicator has reached the level of 5 points, which represents an imminent technical rebound. Therefore, if the Dow Jones remain above 33,593 we can buy with targets at 33,984 and to 0/8 of murray at 34,375.
Support and Resistance Levels for October 01 - 04, 2021
Resistance (3) 34,375
Resistance (2) 34,126
Resistance (1) 33,984
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Support (1) 33,273
Support (2) 33,168
Support (3) 32,726
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Trading tip for DOW JONES for October 01 - 04, 2021
Buy above 33,593 (-2/8) with take profit at 33,984, stop loss below 33,533.
Buy if it rebounds at EMA 200 around 33,313 with take profit at 33,593 and 33,984 (-1/8), stop loss below 33,250.
