DJ comprises of 30 prominent companies in the stock market. DJ 30, looks bullish fundamentally as well because, after the lockdowns, economy is restarting and more volume pouring in the stock market.

Market structure: Market structure on DJ 30 is super bullish. The structure has formed HH and HL. Right now, market has slightly tapped the support level. Buying at this level can be risky as we don’t see any confluence. The support at $34,700 is acute, where more confluences are in formation.

Retracements: The golden area of retracement stands in confluence with the support, slightly lower, at $34,650. We will consider this a confluence since the difference in the support and the retracement is minor. Good long positions can be taken at this level.

Trendline: The market structure is bullish. We see a bearish pennant forming at the top resistance. We need to see how this plays out. If it’s broken towards upside, then we are in for longs. If its broken downwards, we still need confirmation for the structure break to go bearish. Following the trendline, we also need to look after the market structure, which is still bullish. Unless, the market falls below $34600, selling is risky given the structure.

EMA: Both EMA’s are bullish, currently, being below the current market prices. EMA 50 is retesting the prices right now at a minor support. As it has previously tested the EMA 50 several times, this time it may break down to retest the EMA 200 which we see forming at the lower support with other confluence factors.

RSI/CCI: Both the oscillators are bearish right now. We will need to wait for either a divergence formed on either of the oscillators at over-sold areas, or they push up to the bullish zone levels.

At the mentioned trading plan, market has 2 confluences of support and retracement levels. We look for minimal of 2 confirmations before trading any setup. Ideally, we do look for 2+ confirmations. But given the supper bullish trend on DJ30, the highlighted region can prove to be logical for long positions.

DJ30 still bullish

Aug 02 2021