The DJIA's pre-cash open price action is uncertain. Consider FXCM's US30 CFD. Its current daily candle has a lower high but a higher lower than yesterday (blue arrows). This pattern is called an inside candle, with the bears not prepared to lower the price and bulls not prepared to take the price higher.
Despite the indecision apparent on the daily timeframe, the hourly chart does have a bullish bias. The EMAs are in bullish formation, and the stochastic is above 80. If it holds (green rectangle), the hourly momentum will increase. However, we are concerned that there is substantial overhead resistance around 33,200. This level has a triple confluence of the R1 pivot, the 61.8% retracement of the previous impulse down, and price resistance (red rectangle). This may prove too strong, given the longer term trend turmoil.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.