Dow Jones 30 Futures — Daily Chart Analysis (14-May-2025)

Key Technical Observations:

Recent Trend:

• Strong recovery from recent lows around 36,700 to current levels near 42,244 — a sharp and steady up-move.

• Fibonacci Levels:
• 0.382 retracement: 39,958.7
• 0.618 retracement: 41,188.7
• Current price has crossed the 0.618 Fib and is now stalling slightly below the recent peak.

• RSI Indicator:

  RSI currently around 67 — approaching overbought zone (>70)
• Momentum is still strong but nearing a region where historically, corrections have followed.

• MACD Indicator:

  Strong bullish crossover from early May
• Histogram increasing, showing momentum is still bullish but slightly flattening today — suggesting momentum might slow down soon.

• Price Action:

• Current candle shows a small-bodied candle with upper wick, which could indicate mild profit booking or hesitation at this level.
• Immediate resistance around 42,300 – 42,350
• Immediate support around 42,000

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• Key Levels to Watch:

Possible Trade Scenarios for Today:

Bullish Continuation (If breaks 42,300 with strength)

• Entry: Above 42,300
• Targets: 42,500 / 42,700
• Stop Loss: 42,120
• Reason: Breakout beyond current hesitation zone backed by volume would extend the uptrend toward prior highs.

Profit Booking/Intraday Pullback (If breaks 42,000)

• Entry: Below 42,000
• Targets: 41,800 / 41,500
• Stop Loss: 42,150
• Reason: RSI near overbought + upper wick candle shows hesitation; a breakdown below 42,000 can trigger mild profit booking.

Summary:

• Bias: Bullish but cautious at resistance
• Watch for breakout above 42,300 or breakdown below 42,000
•  RSI suggests overbought caution approaching, but MACD is still favoring bulls.