Is the DJI 30 stock index readying a near 800-point drop?
In yesterday’s trading, the Dow Jones 30 stock market index sank 100 points before recovering to near unchanged levels by the end of the day. The weakness came despite a positive retail sales number.
September tends to be a seasonally weak month for the US stock market and Dow Jones 30 index. Interestingly, the index is now testing a key horizontal resistance line which could determine the next move up or down.
Source: Admirals MetaTrader 5, DJI30, Daily - Data range: from 3 May 2021 to 16 Sep 2021, performed on 16 Sep 2021 at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
The daily chart of the DJI 30 shown above, highlights a key horizontal resistance level around 34,820. This was previous support during August and now it’s acting as a potential resistance zone.
If sellers can maintain control here then the next level of support is around the 34,030 level which is 19/20 July swing low. This would represent a near-800 point drop so it’s one to watch.
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