Dow Jones Technical Analysis

On the daily chart below for the Dow Jones, we can see that the price recently broke below the key 33528 support, but the sellers couldn’t sustain the bearish momentum as the NFP report gave the market soft landing vibes due to a resilient and strong labour market, the expected moderation in inflation and the likely pause in rate hikes from the Fed in June.

In fact, we saw a strong rally on Friday after the report and the price now is consolidating a bit before another likely rally in the next few sessions.

On the 4 hour chart below, we can see that the NFP report caused the price to break above the Trendline and the 33538 support turned resistance. The movement was fast though, and the price has overextended a bit as depicted by the distance from the blue short period moving average. In such instances, the price generally consolidates or pulls back before resuming the original trend. We can see that a good spot for another entry for the buyers would be the 33538 support where we can find confluence with the 38.2% Fibonacci retracement level and the red long period moving average.