Dow Jones rebounds and retest the resistances – technical analysis – 08-11-2016
With the opening of the market this week; the Dow Jones managed to rebound and rise from the support level of 17859, where this level represents 23.6% correction level for the rise from 15,369 which the index hit in February, up to the level 18628 which was recorded in August.
During the previous decline movement the index traded between the support 17859 and the resistance 18250, a resistance that coincided with the negative pressure of the SMAs 50 and 100.
The price of the index affected by the US political atmosphere recently, especially the results of the American elections, as the initial indication shows the progress of the Democratic Party candidate Hillary Clinton.
Generally, the index during the current trades is facing the resistance level 18250, as the stability of this resistance will push the price to a further decline over the coming medium and short term in order to try to skip the support 17859, while skipping the resistance 18250 and holding above it will bring back the bullish moves on the index, in order to target the next resistance 18628 and may pass it.