DOW JONES INDUSTRIAL Major Level here! The Dow Jones Industrial Average Indice is seeing a major runup the past few weeks since the beginning of October.
The Dow has seen record gains of 17% since its bottom in Early October.
The Dow is now running into some big-time resistance... That is our focus today to dive in to.
The 30 companies pushing the Dow up may be becoming overbought indicated from RSI and other oscillators.
TrendLine 1
But what we're looking at is the Dow's trendline analysis. We are seeing a Long Time Resistance Line Dating back actually all the way to 2008 guiding as a mean resistance point being touched now again! This marked 'Blue' Line represents that resistance and the Dow is approaching and testing that level now. A Rejection could lead to a selloff, if History Repeats and Dow does not want to head higher at this time.
OPINION : Dow will only break this trendline if looking to really meltup or erase losses and hit All Time Highs. If this is not the case yet, I do not see this breaking upwards at this level.
TrendLine 2
This Trendline has lasted and been intact since the kickoff of the 2022 Bear Market.
We have seen numerous Retests and Rejections of this Resistance Line, and we are now testing this again.
We have YET to break through this barrier, as it guides the market lower & lower.
Again The Dow will need major buying to break thru these levels, as massive resistance is present.
OPINION : Same as above, I can only see a break upwards if buyers really believe Dow is going back to ATH or erase gains in a massive market melt-up
Contrarian to my Writing : This article mainly features idea of a rejection, but one thing that particularly makes me more bullish on Technicals here is that the S&P / NASDAQ have yet hit their own bear market trendlines and this could rally the market up higher to those areas. If this happens, it is likely the Dow follows this movement somewhat, and could see a break above.
Something to keep note of!!!
