The DJ30 index has been trading within a 700-point range with a support level at 31750. However, this support level has recently been breached due to fundamental news out of China, and is expected to become a resistance level upon retesting. A short position is being considered once the market forms a bearish price action to confirm the setup.

Previously, the descending trendline rejected the market at the resistance level, resulting in a bearish drop. No retracement indication is evident in this setup as the market had been ranging before the recent drop. Furthermore, the EMA 50 is currently indicating a super bearish trend, with the possibility of the market tapping the EMA 50 as a retest due to the bearish pressure.

The RSI is currently at 34 and needs to be neutralized at the 50 level in order to align with the technical parameters of the chart. In conclusion, the overall technical analysis suggests a bearish market outlook.

DJ30 super bearish

Mar 15 2023

Stop Loss -0.72%

Holding time 12hr

31725.12

Entry price

31953.45

Stop loss price