Yesterday, we analyzed NASDAQ, and today, the focus shifts to Dow Jones, which is showing slightly more resilience compared to its tech-heavy counterpart. Interestingly, Dow Jones has been respecting horizontal levels with remarkable precision, trading within a well-defined range as markets anticipate today's crucial U.S. Non-Farm Payrolls report.
The closest support level sits at 42,400 points, marked by a black horizontal line, which has repeatedly acted as a key barrier preventing further declines. On the upside, the closest resistance stands at 43,100 points, represented by a blue line, which has capped bullish attempts so far. The price remains trapped between these two levels, and it is likely to continue consolidating until the NFP report is released later today.
A break below the black support line would likely trigger a strong sell signal, with the next target set at 41,800 points, marked with red color on the chart. On the other hand, a breakout above the blue resistance line would indicate a bullish breakout, opening the door for an advance toward the green horizontal resistance at 44,100 points.
The market’s reaction to the NFP data will be the key catalyst determining whether Dow Jones continues its range-bound movement or breaks out in a decisive direction. Traders should closely monitor these key levels, as whichever level—black or blue—gets breached will dictate the next major trend for Dow Jones.