DJIA, H4

The four-hour chart shows the formation of a Bearish Flag price pattern, the exit from which occurred downwards above the resistance level of 33299.2, and the nearest target is now at the level of 31830.9. A confirmation of a large price model can be the Three Black Crows candlestick analysis figure in the range of 32966.3–33299.2, which signals the continuation of downward dynamics and increasing pressure from sellers. In the current situation, the instrument will likely continue to move towards the support level of 32633.3, overcoming which will strengthen the negative dynamics in the area of 31830.9–30669.8. An alternative scenario is possible if the "bulls" hold the level of 32633.3, then we should expect the price to recover back to the resistance line of 33299.2, consolidation above which will allow the index to head to the area of 34374.9–35143.2.

DJIA, D1

The daily chart shows that quotes have overcome the lower limit of the uptrend in the area of 34374.9, forming the Hanging Man and Shooting Star patterns, which allowed the "bears" to consolidate the price lower. The signal for a reversal at the top at the resistance level of 35143.2 was the formation of the Evening Star and Hanging Man reversal candlestick patterns. At the moment, quotes are holding at 32966.3, having formed a Three Black Crows trend continuation pattern. In this case, the most likely scenario is a further decline to the level of 32633.3, consolidation below which will become a catalyst for opening short positions with targets in the area of 31830.9–30669.8.

Support and resistance

Support levels: 32633.3, 31830.9, 30669.8.

Resistance levels: 33299.2, 34374.9, 35143.2.

Trading tips

Short positions can be opened below the level of 32633.3 with targets at 31830.9, 30669.8. Stop-loss — 32966.3. Implementation time: 7 days and more.

Long positions can be opened above 33299.2 with targets at 34374.9, 35143.2. Stop-loss — 32966.3.