The Wall Street Dow Jones 30 Index (#INDU) is trading at 35,527 with a bearish bias, as it is below the SMA of 21 and with immediate support at the EMA of 200 located at 35,445.
Investors are very confident that tonight the Federal Reserve will announce faster withdrawal of its monetary stimulus by buying bonds. The US central bank could cut its asset purchases by extra $15 billion per month, thus terminating the program by March 2022. If the decisions do not match analysts' expectations, the Dow Jones 30 index could rebound with targets towards the resistance of 8/8 Murray at 35,937.
On the 4-hour chart, we can see the 21 SMA is putting pressure on the Dow Jones. A sharp break through the 200 EMA could accelerate the decline to the support of 6/8 Murray at 35,156.
Conversely, as long as it remains trading above the 200 EMA, there will be an opportunity to buy on the technical bounce, targeting 35,750 and up to 35,937.
On December 14, the eagle indicator reached the 95-point zone that represents an extremely overbought market. Therefore, a sharp break below the 200 EMA could be the confirmation of the Dow Jones' downtrend in the medium term.
Therefore, at 14:00 New York time, strong volatility is expected in all Wall Street indices. Please be cautious in trading, wait for the policy update announced by the Fed, and make a decision according to the trend or the support and resistance levels noted above.
Support and Resistance Levels for December 15 - 16, 2021
Resistance (3) 36,105
Resistance (2) 35,937
Resistance (1) 35,755
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Support (1) 35,404
Support (2) 35,244
Support (3) 35,156
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A trading tip for Dow Jones 30 on December 15 - 16, 2021
Buy above 35,420 (200 EMA) with take profit at 35,744 and 35,937 (8/8), stop loss below 35,370.
