Dow Jones , daily time frame 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.
