31500 is the major support in this bullish structure on DJ 30. This support needs to be respected in order for the market to continue moving up. If this support is breached, we may see a structural change towards the bearish side. The profit target on this setup is 32500. Market has formed higher highs and higher lows which indicate bullish strength on the pair. We will buy at the support level.

Three trendlines are in play on this setup. First was a major descending trendline which was broken out for buys and has been validated by the price action. After the breakout buy, we were vulnerable to another attempt of an ascending trendline with a breakout sell. The reason this breakout sell was invalidated is due to the fact that the structure still remained bullish and was unable to break the support.  Now, the third trendline is in formation for the breakout buy on a lower timeframe. Once this breakout buy has been induced, we may see a confirmation of the buy sentiment continuation.

The support level is in confluence with the golden retracement area of 75-78.6%. This confluence is our entry point where we will be looking to go long.

Both the EMA's have turned bullish but the death cross is still bearish. But the death cross is on the verge of turning into a bullish death cross. Once the market retracts towards the support level, we may see the confluence of the EMA 50.

Both the oscillators need to be neutralized. This neutralization will be catered with the support level. It will provide us with ultimate buy positions once the oscillators turn towards the neutralized levels. Right now, the RSI is at 18 and CCI is at -153.

31500 buys for DJ30

Jun 10 2022