The Dow Jones 30 index broke above the historic high on upbeat investor sentiment, creating an atmosphere of hawkish rally towards 35272 and settling new records at 35600. The break above 35330 has signaled the bulls’ commitment to maintain the upward projections, while 35252 is strong support for now.

The oversold relative strength index attracted the investors in the early quarter at interday timeframes to buy the dip in right levels. Price action has recouped the most recent losses and attempted to test the peak at 35600 but failed to move any higher than that for now. A bullish breakout may extend the rally towards the milestone at 36000-36500. The Dow Jones 30 index has been in a range bound behavior between 35533 as a resistance and 35230 as a support on the daily chart. The psychological levels of consolidating behavior above 34700 can be an accumluation towards further gains unless the Dow Jones 30 index finds a shift in mood towards going for a bearish correction. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

As we have mentioned above in our market forecast ; The Dow Jones 30 index has been in a range bound behavior between 35533 as a resistance and 35230 as a support on the daily chart - indicates that the bulls and retail traders are waiting on fundamentals to provide a hike above the all time highs 35600 to open gates towards 36000-36500. Also observing the weekly time frame, the psychological levels of consolidating behavior above 34700 can be an accumluation which is gaining ground towards setting new record highs. In case we recieve a bearish breakout below 35240, this would lead Dow Jones 30 index for a deeper pull back towards 34700. According to elliot wave pattern, on daily and interday weekly time frame, we might be getting to witness a sharp final bullish wave towards 36000 before experiencing any deeper bearish corrections. 

DJ30

Sep 07 2021

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