Dow Jones 30 (US30) offers a downward bias toward 34,385
Friday's initial rally was sold into with sellers emerging at 35,506. Follow-through negative momentum resulted in a Bearish Outside Candle being posted on the daily chart. This is negative for short-term sentiment.
Our focus this week is on 34,400-34,385:
• we have two bespoke support levels colliding at 34,385. This adds to the strength of this support.
• we have a 61.8% Fibonacci retracement level located at 34,400 (from 33,676-35,701).
• this area has been pivotal through June and July.
Conclusion: Although the immediate bias is for lower levels, and we look for traders to focus on 34,400-34,385, we look for the dip to be bought.
Our focus this week is on 34,400-34,385:
• we have two bespoke support levels colliding at 34,385. This adds to the strength of this support.
• we have a 61.8% Fibonacci retracement level located at 34,400 (from 33,676-35,701).
• this area has been pivotal through June and July.
Conclusion: Although the immediate bias is for lower levels, and we look for traders to focus on 34,400-34,385, we look for the dip to be bought.