Dow jones industrial average is trading today at 21770 with loss. After sharp breakdown below 21920 we saw Dow hit 21704 and almost hit September bearish target of 21700 on downside. Below 21700 next major support as well as target zone for this bearish trend will be at 21350.
Dow jones weekly chart set up showing, Dow jones future this week traded into range of almost 250 points and trading with losses for this week. This was first negative week for Dow jones future after last 2 weeks gains. Prices are now below 5 weeks average of 21820 with corrective pattern. On downside 21440 and then 20540 are 20 and 50 weeks average levels and major support zones as well as target zones for this correction if continues. Weekly RSI is at 64 and now heading lower towards 50 mark and MACD is at 416 with topped out corrective pattern.
For future traders, Dow jones future outlook below 21920 remain strong bearish and trading strategy will remain sell on rise. On downside 21700 was first target zone and Dow jones has achieved this target 2 trading session back now 21350 will be next target level. If Dow jones future gives strong reversal rally and breakout above 21920 resistance then expect strong short covering rally and bullish targets up to 22240 and then 22500.
Dow jones option traders below 219200 support, keep buy and accumulate trading strategy in Dow jones 21800 put options of this expiry or Dow jones 21500 put options of next expiry with stop loss for big gains in next week.
Dow jones daily chart set up showing, prices trading with strong corrective patterns and now around 20 days average level. On upside 21830 is 5 days average level and 21750 is 20 days average level and nearest support zone on daily chart. Below that next major support is at 21550 which is 50 days average level and last support of this short term uptrend. Daily chart RSI is at 45 with sell signal and suggesting downside move in upcoming weeks. While MACD is at 2 and heading towards zero with bearish corrective patterns.
Dow jones future from long term view, hit 2017 first investment target of 21350 and was heading towards 22940. But last few week correction taking prices towards support of 21350. If slips below 21350 on monthly closing basis with large volume and strong price action then expect long term correction and big downside up to 18400 for Dow jones index.
In last 9 months, only 2 month are with losses while 7 months are positive suggesting overall investor’s bullish view towards this major US equity index. This month red candle suggesting profit booking and support testing move.