04.05.202115:43 Forex Analysis & Reviews: Trading Signal for Dow Jones 30, #INDU, for May 04 - 05, 2021: Sell below 33,970

In the early American session, the Dow Jones Industrial Index 30, #INDU, is trading 0.79% down under downward pressure, after having found resistance in the 34.240 area. With this resistance, we note that on previous occasions the Dow Jones faced a strong barrier, and now from that point we are seeing a pullback.

Conversely, a break below the 21 SMA, and a consolidation below 33.980, a new bear cycle could occur, taking it down to the 7/8 murray support.

The Dow Jones is likely to now try to break the support of the 21 SMA (34,000), which is currently trading at the same level. A bounce off that area will again give an upward momentum to challenge the resistance of 34240.

The technical reading of the eagle indicator is showing a bearish signal, therefore we should expect a close in 4- hours charts below the SMA of 21, for a new bearish movement.

The market sentiment report shows that 67% of traders who are selling the Dow Jones #INDU, this is a sign that there could be an upward rebound in the 7/8 zone or 32,812 (200 EMA), because the bullish force still continues to prevail according to the sentiment index.

Our recommendation is to sell below the 21 SMA (33,970) with targets up to the 200 EMA around 32,800.

Support and Resistance Levels For May 04 - 05, 2021

Resistance (1) 34,086

Resistance (2) 34,195

Resistance (3) 34,296

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Support (1) 33,917

Support (2) 33,830

Support (3) 33,675