Dow falls 300 points from technical resistance

July 09, 2021 12:00

The Dow Jones 30 stock market index fell 300 points as global markets faltered on worries regarding the economic recovery.

Many countries are dealing with a rebound in coronavirus cases, with Japan declaring a state of emergency weeks before the Tokyo Olympics.

The Dow topped out at historical resistance from a long-term consolidation pattern, as highlighted between the two black horizontal lines in the chart below.

Source: Admirals MetaTrader 5, DJI30, Daily - Data range: from Mar 16, 2020, to Jul 8, 2021, performed on Jul 8, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

 

Evolution in the last 5 years:

  • 2020: 7.09%
  • 2019: 22.66%
  • 2018: -5.46%
  • 2017: 24.76%
  • 2016: 12.74%

 

The daily price chart above of the DJI 30 shows a clear consolidation developed after a long-term uptrend. So far, price has been respecting and trading in between the upper resistance and lower support.

If the price can break above the top of the resistance and consolidation pattern, it will be a clear sign that buyers are taking control and could lead to higher prices so it’s certainly one to watch!

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