The Dow Jones Industrial Index (#INDU) is trading below the 21 SMA located at 35.302, and above the strong 6/8 Murray support located at 35.156. We believe there could be a correction towards the EMA of 200 located at 34,947.
However, the Dow Jones remains within a strong uptrend, so a break of the 21 SMA will be a good opportunity to buy with the targets in the 7/8 murray resistance zone located at 35.546. The eagle indicator that measures the strength and volume of the market is approaching oversold levels.
The stock market is awaiting the speech of Federal Reserve Chairman Jerome Powell who is expected to offer clear guidance on what date the Fed will start the reduction of bond purchases.
The key point is the 35,300 level. A downward movement could start below this level as we observe a technical inverted pennant pattern. The breakout of 35,156 will activate the signal and could be a good selling opportunity with the targets at 34,960.
Support and Resistance Levels for August 27 - 30, 2021
Resistance (3) 35,665
Resistance (2) 35,552
Resistance (1) 35,408
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Support (1) 35,258
Support (2) 35,078
Support (3) 34,964
The material has been provided by InstaForex Company - www.instaforex.com