- The Dow Jones is eyeing 30,200 as its nearest support level
- Price action is currently stuck around the active Fibonacci support level of 30,375
While the Dow Jones is in the midst of a 4 day up trend Bucking the trend and turning lower, after closing at 30,424 yesterday, the Dow Jones opened today at 30,400, to be greeted by bearish sentiment that overshadowing today's price action. Irrespective of the bearish mood, the Dow Jones retains a distinct 30,265 to 30,823 daily range.
The Dow hit a significant low of 28,726 around 20 days ago, but has since recovered 5.91%.
Dow Jones made an initial break below its 3 day Simple Moving Average at 30,378, a possible indication of a forthcoming negative trend. The Dow is currently flirting with an active Fibonacci support level around 30,375. The Dow Jones's upper Bollinger Band® is at 30,726 which indicates a further downward move may follow. In contrast, the Dow could begin to recover as it approaches significant support, now 168.92 points away from 30,200. Dipping below could be an indication that further losses are ahead.
In general, examining the technical analysis landscape, although indicators are mixed further drawbacks may be next for the Dow Jones.
Fundamental indicators – United States Existing Home Sales (Sep) came out at 4.71 million, while a consensus of analysts was expecting 4.7 million.
In the meantime, negative performances are also seen in other markets, ASX 200 closed at 6,730.7 (down 1.02%). Hang Seng is trading around 16,280 (down 219.78 points). KOSPI Composite Index is down to 2,218, losing 19.44 points, after closing at 2,237.44 in the preceding trading session.