During the American session, the Dow Jones Industrial Index is trading above the SMA of 21 and above the strong support of 6/8 of Murray. The outlook is bullish with an immediate target in the area of the EMA of 200 around around 34,218 and 34,375.
After last week's sharp decline, the Dow Jones continues its bullish run. It is now in a consolidation phase and the uptrend is likely to continue to the psychological level of 35,000 in the medium term.
The initial unemployment claims report indicated that 411,000 Americans filed for first-time unemployment benefits last week. Analysts had expected initial jobless claims to total 380,000. This data could increase the market volatility and give a strong bullish momentum to the Dow Jones #INDU, up to the resistance zone of 34,500.
Our outlook continues to be bullish for the Dow Jones. The bullish move is expected as long as the index remains above the 21 SMA, to continue until breaking the strong resistance at 34,375.
In the 4-hour chart, we can see a downtrend channel that is traced from the high of 34,771, where the +1/8 of murray is located. It is an extremely overbought zone. Since this bearish channel remains intact, we hope that the Dow Jones will try to break this level in the next few days.
Our recommendation is to buy at the current price levels (33,905), above the 21 SMA. Besides, if it makes a technical bounce in the 6/8 zone around 33,593, there will be an opportunity to buy with targets at 34,218 (200 EMA) and 34,375 (8/8).
Support and Resistance Levels for June 24 – 25, 2021
Resistance (3) 34,218
Resistance (2) 34,119
Resistance (1) 34,038
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Support (1) 33,824
Support (2) 33,698
Support (3) 33,488
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