Dow Jones Technical Analysis – Daily Timeframe
The Dow Jones Index experienced a significant upward trend after entering an ascending channel. However, during its latest encounter with the resistance at the upper boundary of the channel, a deep price correction was observed, extending down to the support at the lower boundary of the channel. In the past week, efforts to break the previous resistance and establish a new high within the channel were unsuccessful. This price action has strengthened the likelihood of a trend change from bullish to neutral or even bearish, necessitating a more thorough analysis of market conditions.
Dow Jones Technical Analysis – 1-Hour Timeframe
If the Dow Jones Index loses its dynamic support level and penetrates below the blue supply zone, the likelihood of a deeper price correction will increase. This situation indicates a weakening of the current upward trend and the potential for a reversal toward bearish or neutral territory. However, if the resistance at the upper boundary of the channel is broken, it can be expected that the Dow Jones Index will continue to grow and move toward higher price targets. This scenario reflects the continuation of the bullish trend and a reinforcement of the prior movement.
Dow Jones Technical Analysis – 30-Minute Timeframe
In the 30-minute timeframe, the Dow Jones Index is situated within a clearly defined ascending channel and is oscillating. A bearish scenario becomes more likely if there is a decisive break and price stabilization below the most recent support low (the orange line). This break would indicate a weakening of the current upward trend and the potential for a reversal toward bearish territory. Conversely, if the upper boundary of the channel and the blue resistance level are broken with an increase in trading volume, the likelihood of a continuation of the upward trend is reinforced. This indicates that buyers are overcoming sellers, supporting the persistence of the bullish trend.