The Dow Jones Industrial Average is trading around 51,244 points after posting a sharp decline upon encountering significant resistance around the 5/8 Murray level.
The Dow Jones 30 has fallen below 53,900 points to 51,244 points—a drop of more than 3% over the past 12 hours— so we believe it could continue to fall in the coming hours until it reaches the 1/8 Murray level, around 50,781 points, and could even touch the psychological level of 50,000.
Shares of one of the 30 most liquid companies in the Dow Jones Industrial Average—NVIDIA Corporation—fell more than 8%, and we also observed that Cisco Systems shares dropped 6%. These stocks, along with others, were the main drivers of the Dow Jones Industrial Average's decline, so it is likely to continue falling, as US employment data will be released tomorrow.
From a technical perspective, if the Dow rebounds toward the 200-day exponential moving average (EMA), currently at 52,199, or toward the 3/8 Murray level, around 52,343, this will be seen as an opportunity to open short positions, and we could expect it to target 50,781 and 50,000 points in the coming days.
On the other hand, if the price consolidates above 50,781—around the 1/8 Murray level—in the coming hours, it could be considered a buying opportunity, with targets at 52,199 and 52,343—around the 3/8 Murray level.
The Eagle indicator is reaching oversold levels, and from a technical standpoint, we could plan to enter long poisitons in a support zone.
