Dow Jones Industrial Average (US30) Analysis - March 31, 2025
Chart Structure & Pattern
Head & Shoulders Pattern: The chart shows a clear double head & shoulders formation, which is a strong bearish reversal signal.
Neckline Break: Price has already broken below the neckline of the pattern, confirming a potential downward move.
Retest in Progress: The price is attempting to retest the neckline around the 42,000 - 42,500 zone, which could act as resistance.
Key Levels to Watch
Resistance Levels:
42,500 - 42,800 (Neckline resistance; sellers may defend this level)
43,200 - 44,000 (If price reclaims this zone, bearish structure invalidated)
Support Levels (Bearish Target Areas):
40,000 - 39,800 (Psychological support)
38,731 (Highlighted major target, where price could bounce)
37,600 (Next major demand zone if 38,731 fails)
Potential Scenarios
✅ Bearish Scenario (More Likely)
If price rejects 42,500, a continuation to 38,731 (-9.51%) is highly probable.
Volume is rising on declines, confirming strong selling pressure.
📈 Bullish Scenario (Less Likely)
If price closes above 42,800, we could see a short squeeze toward 44,000.
Conclusion
Overall Bias: Bearish
Confirmation Needed: Watch price action at 42,500-42,800—if rejected, expect a drop.
Ideal Trade Setup: Sell near 42,500 with a target at 38,731.
Chart Structure & Pattern
Head & Shoulders Pattern: The chart shows a clear double head & shoulders formation, which is a strong bearish reversal signal.
Neckline Break: Price has already broken below the neckline of the pattern, confirming a potential downward move.
Retest in Progress: The price is attempting to retest the neckline around the 42,000 - 42,500 zone, which could act as resistance.
Key Levels to Watch
Resistance Levels:
42,500 - 42,800 (Neckline resistance; sellers may defend this level)
43,200 - 44,000 (If price reclaims this zone, bearish structure invalidated)
Support Levels (Bearish Target Areas):
40,000 - 39,800 (Psychological support)
38,731 (Highlighted major target, where price could bounce)
37,600 (Next major demand zone if 38,731 fails)
Potential Scenarios
✅ Bearish Scenario (More Likely)
If price rejects 42,500, a continuation to 38,731 (-9.51%) is highly probable.
Volume is rising on declines, confirming strong selling pressure.
📈 Bullish Scenario (Less Likely)
If price closes above 42,800, we could see a short squeeze toward 44,000.
Conclusion
Overall Bias: Bearish
Confirmation Needed: Watch price action at 42,500-42,800—if rejected, expect a drop.
Ideal Trade Setup: Sell near 42,500 with a target at 38,731.
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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.
Related publications
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.