Dow Jones (DJIA) Technical Analysis – May 23, 2025
Dow Jones Industrial Average hits strong resistance at 42,800
Dow Jones (DJIA) Technical Analysis – May 23, 2025
Current Price: 39,850
Key Technical Indicators:
- 50-day Moving Average (50 MA): 39,430
- 200-day Moving Average (200 MA): 38,100
- Relative Strength Index (RSI): 58 (Neutral-Bullish)
- MACD: Positive crossover, momentum slowing
Chart Pattern:
The Dow is currently trading within a rising wedge pattern, typically a bearish formation. After rallying from the 38,500 zone, prices tested the upper boundary near 40,100 and have since struggled to sustain higher levels.
A confirmed break below 39,700 would indicate the start of a downside correction, with immediate support at 39,500 and further down at 39,000.
Key Levels to Watch:
| Resistance | Support |
|---|---|
| 40,100 | 39,700 |
| 40,300 | 39,500 |
| 40,500 | 39,000 |
Technical Summary:
- Short-Term Trend: Neutral
- Medium-Term Trend: Bullish (Above 50 & 200 MA)
- Indicators: RSI near neutral zone, MACD bullish but weakening
If the Dow fails to hold 39,700, a downside move toward 39,500-39,000 is likely. Bulls need a sustained move above 40,100 for fresh momentum.
Conclusion:
The Dow remains in a cautious uptrend but with rising signs of exhaustion. Traders are advised to watch for a breakdown below 39,700 or a breakout above 40,100 for the next directional move.
Strategy:
- Long: Above 40,100 with a target of 40,500
- Short: Below 39,700 with a target of 39,000
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