The Dow Jones Industrial Average (DJI) on the 4-hour chart remains in a bullish structure. After breaking the resistance area (BoS) around 45,700, the price has continued to form higher lows while respecting the ascending trendline.
Key Levels on the Chart
Green Support Zone (45,400 – 45,600):
This zone, overlapping with the ascending trendline, plays a crucial role in sustaining the uptrend. As long as the price holds above this area, the bullish outlook remains dominant.
Red Resistance Zone (46,500 – 46,700):
This level currently acts as the main barrier for the Dow Jones. Recent candles suggest that selling pressure increases in this zone, and buyers need stronger momentum to break through it.
Ascending Trendline:
The trendline formed from the early September low is still valid. A clear break below it would be the first warning of a potential shift from bullish to corrective movement.
Learn about “Price Action Trading“.
Possible Scenarios
Bullish Scenario: If the price breaks and consolidates above 46,700, the index could continue its rally towards 47,200 and possibly 47,500.
Corrective Scenario: If the price fails to break the resistance, a pullback towards the support zone at 45,400 – 45,600 is likely. Breaking this support could intensify selling pressure, pushing the index towards 45,000.
Conclusion
Overall, the structure remains bullish, but the Dow Jones has entered a critical decision zone. Traders should closely monitor the 46,500 – 46,700 area, as a breakout or rejection here will likely determine the short-term direction of the index.
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