In the early American session, the Dow Jones 30 industrial index, (#NDX) is trading with a strong bullish movement. We see that it has stopped just at the top of the daily bearish channel around 35,295. Since October 15, when the 21 SMA was broken, the Dow Jones continues with its upward movement and could reach the all-time high of 35,546.
The optimism of the Wall Street market is being supported by the good performance of the US Treasury. The 10-year Treasury rose to 1.67%, its highest level since mid-May, in line with the better mood of the market. Also, this week, the industrial stocks have a cumulative gain that on average of more than 2.7%, which is giving the Dow Jones bullish strength.
The daily chart shows that the Dow Jones has a probability of continuing its upward movement, as it has broken the 6/8 Murray resistance at 35,156, and the next resistance is located at 35,546. Both levels represent a range zone, since in August and September, the Dow Jones was oscillating between these prices.
The key support is located at 35,100. If the Dow Jones consolidates again below this level, there may be a decline to the support of the 21 SMA located at 34,485.
Meanwhile, we hope that in the next few days the Dow Jones will be oscillating between the maximum and minimum of 35,540 - 35,150. A sharp break above or below this area may define the next movement. If there is a trend continuation, it is expected that it may rise up to 35.937 (8/8). If there is a correction, it can fall to 4/8 of Murray at 34.375.
Our forecast in the next few hours is to continue buying the Dow Jones with targets at 35,546. On the other hand, if there is a technical bounce at the 6/8 Murray support, we can also buy.
Support and Resistance Levels for October 20 - 22, 2021
Resistance (3) 35,581
Resistance (2) 35,554
Resistance (1) 35,440
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Support (1) 35,256
Support (2) 35,156
Support (3) 34,959
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A trading tip for DOW JONES for October 20 - 22, 2021
Buy above 35,300 or if rebound 35,156 with take profit at 35,546 (7/8), stop loss below 35,250 and 35,100.
The material has been provided by InstaForex Company - www.instaforex.com