The structure of the DJI30 stock index suggests the formation of a global bearish trend that moves inside a large green channel. On the current chart, we see the price movement since March.
SimpleFX DJI30 Chart Analysis: May 10, 2022
Since the end of February, the price has been zigzagging up to the upper green line. At the end of April, the bulls reached the upper green line but did not break through it. After that, the market rapidly crept down within the descending yellow channel. A few days ago, the bulls reached the upper yellow wall but did not break through it. The price, having pushed off from the yellow resistance line, began to move down.
It is possible that the bulls will make a second attempt to break through the yellow resistance line. At the breakdown of the price mark of 33243, the index may begin to rise in the direction of the resistance level of 35368, which is located on the upper wall of the green channel. In the current situation, it is possible to consider opening long positions.
Alternatively, it is assumed that the downward trend will continue to develop, which will move in the direction of the lower green line. Perhaps if the bears can break through the support level of 31853, the downtrend will be more powerful. In this case, market participants will be waiting for the continuation of the downward movement of the price to the next support level of 29946, which is located on the lower yellow line.