The Dow Jones Industrial Average (DJ30) is trading around 50,783, above the 21-day SMA and within a downtrend channel that has been forming since May 24, with upside potential in the coming days.
The DJ30 is likely to continue rising if it consolidates above 50,781 and could reach the +2/8 Murray line around 51,562. This zone represents a strong level of extremely overbought conditions, so a technical correction could occur when the price reaches this zone.
Conversely, if the Dow Jones falls below the 21 SMA at 50,712, we could expect a continuation of the downward movement, and it could reach the psychological level of 50,000 in the coming days—it could even sink to the 200 EMA around 49,609.
The Eagle indicator has reached overbought levels. So, technically, on the H4 chart, we observe that the market is showing signs of exhaustion. A consolidation below 50,780 could occur, enabling a drop in the coming days toward 50,000 or 49,600.
Our trading plan for the coming hours is to sell below the 21 SMA in the event that the DJ30 index pulls back and consolidates below this level, with targets at 50,320 and 50,000 points.
