In this morning of the American session, the Dow Jones is trading below the 6/8 Murray and below the 200 EMA, having found firm support at the 33,300 area.
Yesterday due to fear of the rebound in inflation in the US and its main indicator, the Dow Jones fell by a remarkable 1.99% to the 33,280 area.
On the 4H chart, we can see the Dow Jones with a firm rebound given that since the beginning of the week we have noticed this fall. There is likely to be an upward rebound, given that the 33,300 level, on previous occasions has acted as a strong resistance. Now, this level will give bullish strength and limit the losses of the Dow Jones.
As the 33,300 area is strong daily support, we recommend buying if the pair bounces above this level, we have also drawn a very steep downtrend line. If it breaks it and consolidating could give the Dow Jones a break. #INDU and go up to the 34,300 level there is the SMA of 21.
The technical reading of the eagle indicator shows that it is in the oversold zone on 4H charts. A bullish rally in the Dow Jones is imminent for the next few hours.
Our recommendation is to buy if it makes a technical bounce in the 33,300 area, or a break of the bearish channel and consolidation above 6/8 of murray may give us the opportunity to buy with targets at 34,000 and 34,200 (SMA21).
Support and Resistance Levels for May 13 - 14, 2021
Resistance (3) 34,576
Resistance (2) 34,105
Resistance (1) 33,791
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Support (1) 33,409
Support (2) 33,315
Support (3) 33,160
The material has been provided by InstaForex Company - www.instaforex.com