As you can see on the chart, the DJI has broken down from a key support zone as mark. This breakdown is significant because it signals a possible shift in momentum from bullish to bearish.
Now, what’s next? Based on technical analysis, I’m expecting a short-term pullback — possibly a retest of the broken support, which could now act as resistance. If that happens, we could see the DJI climbing back toward the support zone before continuing its downward journey.
The next leg down could take the index toward target zone around 39,000, with a possible dip even lower to 38,827. This would represent a total decline of approximately 7.31% from the recent breakdown. Also have a longer-term trendline providing some support, but if that breaks, things could get even more bearish, with potential lows near 37,611.
So, what should we watch for? Keep an eye on the retest of the support-turned-resistance zone and the price action around the trendline support. If the price gets rejected at resistance and breaks below the trendline, that would confirm further downside.
See you in the next one!
Now, what’s next? Based on technical analysis, I’m expecting a short-term pullback — possibly a retest of the broken support, which could now act as resistance. If that happens, we could see the DJI climbing back toward the support zone before continuing its downward journey.
The next leg down could take the index toward target zone around 39,000, with a possible dip even lower to 38,827. This would represent a total decline of approximately 7.31% from the recent breakdown. Also have a longer-term trendline providing some support, but if that breaks, things could get even more bearish, with potential lows near 37,611.
So, what should we watch for? Keep an eye on the retest of the support-turned-resistance zone and the price action around the trendline support. If the price gets rejected at resistance and breaks below the trendline, that would confirm further downside.
See you in the next one!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.