Analysis of Dow Jones Industrial Average (US30) 20/06/2024
Current Price: 38,823.79 USD (as of June 19, 2024)
Chart Overview:
The chart displays price action, Fibonacci retracement levels, trend lines, and volume profile analysis.
It utilizes Liquidity Heatmap, VWAP (Weekly), and volume data.
Key Observations:
Price Action:
The price has been moving within a descending channel marked by the red trend lines.
Current price action shows consolidation around the 38,800 level.
Fibonacci Retracement Levels:
Key Fibonacci levels are plotted from the recent high at 40,128.94 USD.
0.618 level at 38,352.56 USD is acting as a significant support level.
0.705 level at 38,102.48 USD and 1.618 extension at 37,619.16 USD are other crucial levels to watch.
Trend Lines:
The descending channel indicates a bearish trend in the short term.
A potential breakout above 38,996 USD could signal a bullish reversal.
Volume Profile:
High volume nodes at 38,700-38,800 and 39,100-39,200 suggest these as areas of strong interest.
Low volume areas may act as zones where the price could move quickly.
VWAP:
The weekly VWAP is at 38,733.79 USD, close to the current price, indicating a balanced market around this level.
Liquidity Heatmap:
Significant liquidity zones are highlighted in green and red, with notable activity around 38,100 and 39,000 USD.
Potential Scenarios:
Bullish Breakout:
A move above the descending channel's upper boundary and the resistance at 38,996 USD could push the price towards the next resistance at 39,437.25 USD.
Further upside targets include 40,150.92 USD and the Fibonacci extensions at 41,304.06 USD and 42,457.84 USD.
Bearish Continuation:
If the price fails to break above 38,996 USD, it could test support levels at 38,352.56 USD and 38,102.48 USD.
A breakdown below these supports could see the price heading towards the 1.618 extension at 37,619.16 USD and potentially lower levels like 36,792.40 USD and 35,965.65 USD.
Consolidation:
The price might continue to consolidate within the range of 38,100 USD to 39,000 USD before a significant move.
Indicators:
Volume: Decreasing volume could indicate a lack of momentum. A spike in volume is necessary for confirming any breakout.
VWAP: Staying near the VWAP suggests equilibrium, but a move away could signify a new trend.
Conclusion:
Traders should watch for a breakout above 38,996 USD for a bullish signal or a breakdown below 38,352.56 USD for a bearish continuation.
Monitoring volume and liquidity zones will provide additional confirmation for potential moves.
The overall sentiment appears neutral to bearish, but a significant move in either direction could change the market dynamics.
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.