Summary:
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US30 finished the previous week more or less flat
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Two key levels can be drawn on the H1 interval
Technical Overview: US30
Starting with W1 interval, we can see a huge consolidation range. After enormous gains from 2017, the market eased at the beginning of 2018 and failed to rally in similar fashion later on. Of course, there was an attempt to break to new all-time highs in August 2018, but the market eventually pulled back. Last week saw little action on this index. The trading range was very tight and the index closed the week near the opening price. The price is within the demand zone now but there are little signals on the chart hinting at a potential decline or rally. Having said that, let’s move to the lower interval.
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Source: xStation5
From the D1 interval perspective, we can see that Dow Jones is trading in the resistance zone. The attempts of breaking above it in the last week ended with nothing. Given the easing of the upward movement, one cannot rule out the possibility of the index delivering a downward correction.In such a scenario the key support is localized around 25300 pts handle.
Source: xStation5Moving onto an even lower time frame (H1), investors should keep in mind two levels. The 26260 handle is the nearest resistance while the level 25900 handle should serve as a support. Break above the resistance or below the support could be a trigger for a large price move in the direction of a break.. Until that time range trading seems to be the base case scenario for US30.
Source: xStation5
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