DJ30 has established its support, by tapping the level almost 3 times. With this area of support, market has the potential to break it below and continue moving downwards. Market has already formed a lower low and lower high, depicting a downward trend on H4.

The ascending trendline has induced the breakout sell. It is to be noted, that the descending trendline has been blanketing the prices of the price action. They have been rejected after tapping the trendline. 

The retracement area is in confluence with the resistance level, which is well respected earlier. The confluence formed is at the level of 61.8% and the resistance level.

EMA 50 is above the price action and is tapping the prices. This means, the prices and the trend is bearish.

RSI is at 34. It needs to neutralize at the level of 50 and align with the prices on the charts. 

Breakout sells on Dow Jones 30

May 16 2023