Dow Jones Technical Analysis | Forexlive

On the daily chart below, we can
see that as the price rallied back into the resistance zone near the 34477, it got
rejected and started to fall towards the 32684 support. The red long period moving
average acted as resistance for the buyers and offered the sellers good entry
points on pullbacks.

The main culprit for the selloff
was the more hawkish repricing in interest rates expectations as US economic
data this month surprised to the upside and made the market to reconsider an
imminent Fed pause. On top of that, we had also the debt ceiling drama lately
and the risk of a US default, although really small, weighed on the Dow Jones.

On the 4 hour chart below, we can
see that amid a choppy price action, we still had some swing levels that the
traders could lean onto. We had just one head fake above the 33535 when we got
positive news on the debt ceiling front. Soon after though, we started to get negative
headlines again and the Dow Jones began to roll over.

The market started to print lower
lows and lower highs breaking below every swing low support and ultimately
stalling at the 32684 support. We can notice that the buyers here are defending
the level strongly as depicted by the multiple long candlesticks’ wicks. It’s
likely that we’ll see a bounce here.

In the 1 hour chart below, we can
see that the price started to consolidate right at the 32684 support and it
looks like the Dow Jones wants to bounce here back into the 33000 support
turned resistance. That’s a level to watch next. If the buyers
manage to break above, then we should see 33300 next.

The sellers, on the other hand,
should lean on that 33000 resistance to position for another fall towards the
32684 support targeting a breakout. Alternatively, if the price breaks below
the support without a pullback, the sellers will be again in control and push
the Dow Jones to new lows.

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• Source: https://www.forexlive.com/technical-analysis/dow-jones-technical-analysis-20230526/