Dow Jones Industrial Average (US30) – Daily Chart Analysis (Feb 28, 2025)
1. Market Structure & Trend Analysis
Recent Downtrend: The price is in a corrective phase after reaching new highs.
Key Support at 41,739: This level has acted as a strong support in the past, making it crucial for price action.
Trendline Support: Below 41,739, there is a rising trendline that aligns around 40,500 - 41,000, which could act as the next demand zone.
2. RSI & Momentum Analysis
RSI at 38.70: The market is approaching oversold conditions, indicating possible exhaustion of selling pressure.
Bearish Momentum: The RSI is still trending lower, meaning further downside movement is possible before a bounce.
3. Key Levels to Watch
Resistance:
43,300 (Current price level, where rejection could occur)
44,000 - 44,500 (Stronger resistance if price reverses upward)
Support:
41,739 (Major horizontal support)
40,500 - 41,000 (Trendline support zone)
4. Potential Trade Scenarios
📉 Bearish Scenario (Higher Probability)
If price fails to hold 41,739, expect further downside toward the 40,500 - 41,000 zone.
Short Setup:
Entry: Below 41,700
Stop-loss: Above 42,000
Target: 40,500 - 41,000
📈 Bullish Scenario (Lower Probability)
If price finds support at 41,739 and RSI starts reversing, a bounce back toward 43,000 - 44,000 is possible.
Long Setup:
Entry: Above 41,800
Stop-loss: Below 41,500
Target: 43,000 - 44,000
5. Conclusion & Strategy
Short-term bias: Bearish towards 41,739, with a possibility of dropping to 40,500.
Trade idea: Monitor for a break or bounce at 41,739, as it will dictate the next big move.
Risk management: Watch for fake breakouts and confirm trends with volume before entering trades.
1. Market Structure & Trend Analysis
Recent Downtrend: The price is in a corrective phase after reaching new highs.
Key Support at 41,739: This level has acted as a strong support in the past, making it crucial for price action.
Trendline Support: Below 41,739, there is a rising trendline that aligns around 40,500 - 41,000, which could act as the next demand zone.
2. RSI & Momentum Analysis
RSI at 38.70: The market is approaching oversold conditions, indicating possible exhaustion of selling pressure.
Bearish Momentum: The RSI is still trending lower, meaning further downside movement is possible before a bounce.
3. Key Levels to Watch
Resistance:
43,300 (Current price level, where rejection could occur)
44,000 - 44,500 (Stronger resistance if price reverses upward)
Support:
41,739 (Major horizontal support)
40,500 - 41,000 (Trendline support zone)
4. Potential Trade Scenarios
📉 Bearish Scenario (Higher Probability)
If price fails to hold 41,739, expect further downside toward the 40,500 - 41,000 zone.
Short Setup:
Entry: Below 41,700
Stop-loss: Above 42,000
Target: 40,500 - 41,000
📈 Bullish Scenario (Lower Probability)
If price finds support at 41,739 and RSI starts reversing, a bounce back toward 43,000 - 44,000 is possible.
Long Setup:
Entry: Above 41,800
Stop-loss: Below 41,500
Target: 43,000 - 44,000
5. Conclusion & Strategy
Short-term bias: Bearish towards 41,739, with a possibility of dropping to 40,500.
Trade idea: Monitor for a break or bounce at 41,739, as it will dictate the next big move.
Risk management: Watch for fake breakouts and confirm trends with volume before entering trades.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.