Dow Jones Industrial Average Levels to Watch as Index Rides 9-Day Losing Streak | Global News Avenue

Dow Jones Industrial Average (DJI) entered trading Wednesday on a nine-day losing streak, the blue-chip index’s longest losing streak since 1978.

The plunge was equivalent to nearly 1,600 pointPreviously, driven by market-friendly expectations from the White House and Congress, the index continued to rise after the election and closed above the closely watched 45,000 point for the first time on December 4.

Despite the recent streak of losses, the index is still up 15% in 2024. However, this rate of return is significantly lower than S&P 500 Index 27% return and Nasdaq Composite Index The Dow is up 34% over the same period as it has less exposure giant capital technology companies.

Next, let’s break it down technical on the Dow Jones Index chart and identifies important chart levels that investors may be concerned about.

Pay attention to the rising channel

Dow moves higher in orderly move rising channel Since late July, the index has marked the pattern’s upper and lower trend lines multiple times to establish an easily identifiable trend line. support and resistance area.

Recently, the index has been trending lower after encountering resistance near the channel’s top trendline earlier this month, raising the potential for break down.

Although Relative Strength Index (RSI) Despite confirming the weakening momentum, it’s worth noting that the last time this indicator posted a similar reading in late October, the Dow went on to gain 6% over the next seven trading days.

Let’s look at three major levels on the chart where the index could encounter support and pinpoint key overhead areas to watch during the rally.

Major support levels to watch

The most interesting level is around 43,300. This area is just below the index’s latest closing price of 43,450 points, finding a confluence Support from the ascending channel’s lower trendline, sloping upward 50-day moving average,October high swing and November swing low.

If it breaks decisively below the ascending channel, the index may fall to the 41,600 level. Investors trading the index can look for buying opportunities near the end of August peak and a low in early November.

an extended shortcoming The move could lead to a re-examination of the index psychology 40,000 level, this area may encounter support near the long-term trendline connecting the various swing highs and swing lows on the March to September chart.

Key areas of overhead expenses to monitor during increases

On the way up, investors should keep a close eye on the key 45,000 level. The index is likely to encounter a series of overhead resistance levels in this area candlestick Located near the Dow All Time High (ATH).

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As of the date of this writing, the author did not own any of the securities mentioned.