Indices Market Analysis – Dow Jones 30

*Live market analysis of Dow Jones 30 Index!*

In the blog post I will show you my own technical analysis of Dow Jones 30 index. I will talk you through its current price level and where I think it will go over the next few days & weeks.

Let’s look at the weekly timeframe chart to start with. As always, it is good practice to check the higher timeframes first before moving down to the 1 hour or 4 hour charts for trade entry opportunities.

Dow Jones 30 weekly timeframe chart.

The main thing I am taking from the weekly timeframe chart is the strong resistance zone at 26500. You can see price has rejected this zone 3 times in the last 12 months or so with price then breaking lower each time. In regards to candlestick patterns, this current week is looking to form a nice bearish wick rejection of the lower bands of the resistance zone marked on in yellow.

With such a clear resistance forming at 26500, it is hard to see price going anywhere but down in the medium/long term.

Dow Jones 30 daily timeframe chart.

If we look at the daily timeframe chart shown above, it is clear to see that price has now fallen downwards after rejecting the resistance zone for a 3rd time. The DJ30 fell over 2000 points through may 2019 before pulling back over the last few days.

On the daily timeframe it is clearer to see price now rejecting that resistance zone again and 2 nice wick rejection candlesticks have formed. This could be a very good sign that the DJ30 will rollover from here and go on to make new lower lows.

Dow Jones 30 daily timeframe chart.
(With Fib levels added for profit target allocation)

On the daily chart above, I have added the fibonacci retracement tool to the recent swing high and swing low points to show the potential levels of resistance where price may be halted. As you can see, price is rejecting the 0.786 retracement level at the 26200 price level.

Another benefit of using the fibonacci tool is to predict profit target levels. If you use the extension levels of -0.27, and even -0.618 for a strong trend, you can predict where the next lower low may form and adjust your market orders from there.

Dow Jones 30 4 hour timeframe chart.
(With short position added)

And finally, by dropping to the 4hr timeframe chart it often gives you more accuracy when placing your entry orders. I particular liked the strong bearish engulfing candle that formed on the 11th June 2019. It shows bearish momentum entering the market at this level and heavy selling taking place at 26200.

Stop losses should be placed above the current daily wick rejection candles to avoid any stop loss hunting or further tests of resistance. It is important on these larger timeframe trades that you are not too aggressive because even with a 450 point stop loss, the trade could still produce a reward:risk ratio of over 4.5 : 1.

You can track this trade live via my TradingView profile by clicking on the link below. As always, I use the TradingView platform for all technical analysis and highly recommend it to anyone in need of charting software.

https://uk.tradingview.com/chart/US30USD/YykfmWwn-US30-Short-Trade-BEARISH-TREND-CONTINUATION/

Thanks for reading my technical analysis and please remember to LIKE, FOLLOW and SHARE my blog to keep up to date with all my latest posts! 🙂

DISCLAIMER: None of the information posted on this site is to be considered investment/financial advice. Trading is high risk and you should only trade with money you can afford to lose.

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