Tuesday brought some profit-taking after the huge Monday’s rally, and the Dow Jones index was down 0.3% ahead of the US session.

The two critical supports now stand at previous highs and lows in the 31,270 USD and afterward at around 30,850 USD, where the 50-day moving average is located. 

As long as the index trades above these two levels, the medium-term outlook remains bullish, and dips are expected to be bought. 

However, the short-term view is a bit risky as US yields are still under pressure, with the 10-year yield rising toward 1.5% again today. Unless yields stabilize and start declining, equities could be vulnerable. 

Moreover, China has warned that it sees bubbles in the US markets, which could be another warning sign for relentless bulls.

On the upside, the next targets could be at 31,600 USD and afterward at last week’s highs of 32,000 USD. 

Source: https://www.axiory.com/technical-analysis/dow-jones-holding-key-supports

Share.

About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

Comments are closed.