- Summary:
- Dow Jones slipped lower after failing to break above the resistance at $28032.56. Major stocks indexes trades near highs, what might happen next?
Dow Jones slipped lower after failing to break above the resistance at $28032.56. However, the Dow index showed significant strength after rejecting the support 27312.62. The recent drop in DJI might be an indication of bearish retracement. But the investors are having a tough time due to the ongoing crisis of the U.S China trade war. Most importantly, major stocks like Apple, Google, Microsoft is consolidating near the critical high. Bullish breakout in these major stocks might push the DJI towards the resistance at $28180.25. A daily closing above the high of 27th November at $28180.25 might result in extended bullish in Dow Jones Industrial Average.
On the downside, Dow Jones Industrial Average needs to break below the minor support at $27737.28 to target the critical support at $27312.68. Breaching this critical support might refuel the Dow Jones bears and result in a deeper fall. Failing to regain bullish momentum at $27312.68 might target the major support level at $27012.42. This level might confirm might provide excellent support and cause the end of bearish correction.
Considering the technical parameters, it is safe to assume Dow Jones bulls are having a tough time. Until the ongoing trade crisis between U.S and China settle it might tough to predict the Dow Jones direction. And the bearish might take advantage of the crisis and initiate corrective moves.