On the daily chart below for the Dow Jones, we can see that the buyers eventually managed to get the breakout after a long consolidation below the key resistance level at 32684 and the trendline. The moving averages have crossed to the upside and the buyers seem to have enough momentum and control to push the price to the next resistance at 33538.
We can also see that the price is a bit overstretched as depicted by the distance between the price and the blue short period moving average . In such instances, we can generally see the price consolidating for a bit or pulling back before resuming the original trend.
Dow Jones Technical Analysis
On the 4 hour chart below, we can see that after breaking above the trendline, the price found some resistance at the 32864 level and pulled back. The buyers though leant on the broken trendline and pushed the price above the resistance, eventually extending the rally as more buyers jumped in and the sellers folded.
The moving averages are well sloped to the upside and the red long period moving average will act as an extra dynamic support in case we get the pullback.
In the 1 hour chart below, we can see that at the moment there’s a resistance at 33122 and the buyers will need to break above it to keep the momentum going. If we were to see a pullback, it’s likely that the price would fall to the 61.8% Fibonacci retracement level where we can find a previous swing level and the old key resistance that now may turn support.
The sellers, on the other hand, will need a break below the support at 32684 to regain control and push the price lower.