Dow Jones Trade Setup Before FOMC Minutes – Will 42,800 Break? | Key Levels & Trade Setup - 21 May 2025
Market Overview
The Dow Jones Industrial Average (DJIA) is approaching a critical resistance level of 42,800, a zone that's been respected multiple times recently. The index has staged a smart recovery from the 40,700 zone, rallying over 2,000 points in just a few weeks.
Now, all eyes are on today’s crucial economic event — the FOMC Meeting Minutes, which could trigger volatility as the Dow tests this key level.
Technical Setup
- Key Resistance: 42,800
- Key Support: 40,700
- Indicators: Supertrend (Positive), RSI at 65, 50 DMA at 41,500
Current Price: 42,677.24 (as of writing)
A breakout above 42,800 could target 43,500, while a rejection may pull the index back towards 41,800–41,500.
Trade Setup
Scenario | Trade Plan | Stop Loss | Target(s) |
---|---|---|---|
Bullish Breakout | Buy above 42,830 after confirmation | 42,600 | 43,200 / 43,500 |
Reversal Sell-Off | Sell below 42,600 if rejected at 42,800 | 42,800 | 42,200 / 41,800 |
Event Risk Alert
The FOMC Minutes release at 2:00 PM EST could trigger sharp swings. Recommendations:
- Trade with strict stop losses
- Avoid overleveraging
- Partial profit booking near critical levels
Final Thought
Markets are sensitive ahead of the FOMC Minutes today. Trade cautiously, manage positions with disciplined stop losses, and track crucial levels. For more real-time trade ideas and post-event analysis, visit 👉 viecapital.blogspot.com
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