In the early hours of the American session, the Dow Jones 30 Technology Index (#INDU) is bouncing above the 200 EMA located at 35,566. This level coincides with the bottom of the uptrend channel formed since October 4.
The 7/8 Murray zone, the uptrend channel line and the 200 EMA have become strong support for the Dow Jones 30. In the next few hours the Dow Jones is expected to consolidate above this level. A bullish bounce gives us a chance to buy with targets towards 8/8 murray around 35,937.
Our trading plan for the next few hours is to buy above the 200 EMA at 35,600. A technical bounce off the bottom of the downtrend channel (35,566) will also be an opportunity to buy with the targets at 35,937.
A sharp break above the downtrend channel formed since November 8 will be the start of a new bullish wave and we could expect the index to rise to the all-time high of +1/8 murray at 36,328.
Conversely, a breakout and consolidation below the 200-day moving average and below 7/8 Murray and a sharp break through the uptrend channel could be the start of a prolonged decline towards the support level of 35,156.
The eagle indicator on November 19 touched the 10-point level which represents an imminent technical rebound. Supported by this indicator, we must buy the Dow Jones 30 in the next few hours with targets at 35,937 and up to the top of the downtrend channel.
Support and Resistance Levels for November 22 - 23, 2021
Resistance (3) 35,865
Resistance (2) 35,758
Resistance (1) 35,674
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Support (1) 35,546
Support (2) 35,364
Support (3) 35,156
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A trading tip for DOW JONES 30 for November 22 - 23, 2021
Buy above 35,600 (200 EMA) with take profit at 35,750 (21 SMA) and 35,937 (8/8), stop loss below 35,530.
