Wall Street

Dow Jones Technical Analysis Report 19 July, 2021

• Dow Jones broke support area
• Likely to fall to support level 33500.00

Dow Jones Industrial Average index falling strongly today – after the price failed to break above the powerful multi-month resistance level 35000.00 (which stopped the sharp uptrend at the start of May, as can be seen below). The downward reversal from the resistance level 35000.00 started the active correction (2) which just broke the support area lying at the intersection of the support level 34125.00 (which has been reversing the price from the middle of June) and the 50% Fibonacci correction of the upward impulse (1) from the middle of June. The breakout of this support area accelerated the active correction (2).

Given the strong risk-off sentiment seen across the equity markets today – Dow Jones Industrial Average index can be expected to fall further toward the next support level 33500.00 (target price for the completion of the active corrective wave (2)).

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