Technical Update - Dow Jones Industrial Average / US30
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: A brief technical analysis update for the Dow Jones Industrial Index....
With its close below support at 34.714 on Friday, the Dow Jones Industrial Average Index has established a bearish trend. Its RSI below 40 is also confirming the bear picture and we could see lower levels over the next week or so.
To reverse the downtrend a close above 35.510 is needed. First warning of that scenario to unfold would be for the Index to break back above the rising trend line it broke last week.
However, what is interesting is that the Future has not yet confirmed a bearish trend. The Future closed just above its support at around 34.572 on Friday and has started the week on a positive note. However, the RSI dipped below 40 indicating negative sentiment - meaning the support could easily come under pressure next few days. A break and close below this support could fuel a selloff down to strong support at around 33.285.