Dow Jones Futures and the technical ping pong game

Dow Jones Futures and the technical ping pong game

Dow Jones has fluctuated strongly during the previous despite being trapped within a sideways range during the previous period.

The recently drawn candlesticks reflect some kind of technical hesitation between the resistance line connected the movements from all-time high at 18270.00 and the support line set from 15775.00 as seen on the provided daily graph.

Dow Jones-05-05

Meanwhile, technical indicators continued to give off mixed trading signals, while SMA50 traded in the middle area between support and resistance, reflecting the trendless actions.

Short-term traders should be patient and wait until Dow Jones succeeds in breaching one of these lines to enter the market.

A sustained breakout above 18100.00 is a positive indication; on the contrary, blasting through 17710.00-17705.00 may bring panic sell-off actions.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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