A special page dedicated to Dow Jones technical candlestick chart breakout analysis. We will keep updating the DJI index page as and when we get to see a new break.
During the November-2022 to November-2023 period, the Dow Jones Industrial Average index moved like a sideways up-down movements with a 30,000 to 35,000 price zone.
A new long-term closing basis support is lying down at the 33500 area. To find it, draw a trendline from the Oct-22 low. If you are looking for nearby short-term support, check out the daily time frame. You will notice that it has recently managed to cross the all-time high level.
Dow Jones Support and Resistance Levels
As mentioned in the September 2023 analysis update, there was a potential decline of more than 1000 points below the 34400 levels. However, we observed a decline of approximately 2000 points, and thereafter, we were unable to provide further updates. Now, let’s consider what might happen next.
Last December, the Dow Jones surpassed its all-time high level, closing above 36800. Since then, it has consistently traded above this level with a sideways movement.
As long as this level is sustained, there will be no bearish sentiment, and the upward journey may continue. A false breakout can only be declared if it closes below this level. A chart image with a weekly time frame is uploaded here.
The world faces three major challenges: high inflation impacting income and living costs, unpredictable weather causing floods, droughts, and heatwaves, and war-like situations causing regional instability. These issues are interconnected.
September-2023 published Analysis
There are two patterns forming on the chart right now. The first technical pattern is a rising channel and the price is standing exactly right on the line.
To see another pattern, you only have to look at the chart after August 1, 2023. It will be seen almost like a bearish flag price pattern.
If the daily candlestick closes below the line, especially below the 34,400 level, bearishness may appear with more than 1,000 points.
The two main factors due to which the decline is been seen now. The first of them is an increase in inflation and the second is an interest rate hike by the central banking system Federal Reserve.
Analysis date: 19-January-2023
DJIA Brief Introduction
Dow Jones Industrial Average (DJIA) is the most followed stock market index that perceives the performance of the stocks of the 30 largest public companies in the United States.
Financial markets of other countries sometimes react based on the movement of Dow Jones.
In the financial market of the U.S., the DJIA is not weighted by market capitalization compared to the S&P 500. Instead, it’s a price-weighted index, meaning stocks with higher share prices have more weight in the index.
Some of the main companies (as of April 2023 beginning) in the list are UnitedHealth Group, Goldman Sachs, Home Depot, Microsoft, McDonald’s Corp, Amgen Inc., Caterpillar, Visa Inc., and Boeing Co.
Although Dow Jones does not have the status of a broad representation, it is yet viewed daily by investors and analysts as a measure of the overall health of the U.S. economy. It is like a snapshot of the economy.