The Dow Jones Industrial Average is trading around 50,669 points, undergoing a technical correction after reaching a high of around 51,220. Based on the daily chart, the Dow Jones is expected to continue falling in the coming days until it reaches the 8/8 Murray level, which is around the psychological threshold of 50,000 points.
After a brief consolidation during April and part of May, the index broke through the 50,000-point resistance level to reach a new high; however, it is struggling to continue rising.
The daily chart shows overbought conditions, and it is likely that the DJ will undergo a technical correction in the coming days. If it breaks sharply below the 8/8 Murray line, below the 21 SMA, and below the uptrend channel, there could be a strong technical correction, potentially reaching the 7/8 Murray line around 48,649 and possibly even the 200 EMA around 47,700.
Given that the instrument is trading within an uptrend channel, a technical correction toward the lower band of this channel around 50,000 points could be seen as a signal to open long positions, with a target at the 2/8 Murray line around 51,562.
Given that the Eagle indicator is giving a negative signal, we will look for opportunities to open short positions if the price consolidates below the +1/8 Murray level around 50,781 points.
