After opening of the American session, the Dow Jones #INDU is trading below the SMA of 21 and very close to the dynamic support of the EMA of 200 located at 34.375. This level is the key level because if the Dow Jones consolidates below 8/8 of murray there could be a bearish move to the 34,000 support zone.
The Wall Street is alert to the meeting on monetary policy that the Federal Reserve begins today and will last two days. The main indices could negotiate with some volatility before any apparent news.
According to analysts, the US central bank is not expected to take any action, but its forecasts on the economy may move the markets and investors await comments from the Fed on Wednesday.
On a 4-hour chart, you can see the #INDU which is trading within an uptrend channel. The break of this channel may accelerate the decline to the 33,970 support.
On the contrary, a bounce to the upper border of the bullish channel around 33,150 will be a good buying opportunity with targets at +1/8 of murray located at 34,765.
If the Dow Jones consolidates above the 21 SMA around 34,400, it will be a sign that the market could make an attempt to climb to 34,765 and higher up to the 35,000 psychological level.
We should expect a consolidation below 34,320 to sell, or a consolidation above 34,400 to buy.
Support and Resistance Levels for June 15 – 16, 2021
Resistance (3) 34,734
Resistance (2) 34,539
Resistance (1) 34,378
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Support (1) 34,194
Support (2) 34,022
Support (3) 33,838
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