FX.co ★ Trading Signal for Dow Jones #INDU for May 25 - 26, 2021: Key level 34,375

In the early hours of the American session, the Dow Jones, #INDU, is trading at strong resistance of 34,375, above the SAM of 21 and above the EMA of 200, with a bullish bias, but slowing down little by little due to the barrier of 4/8 of murray.

The concern of traders and investors for inflation subsided in light of statements by FOMC members. Besides, China began to curb speculation on commodities. Federal Reserve officials reiterated that current data is not indicative of the type of inflation that would end an economic recovery.

The Dow Jones, #INDU, on several occasions has found strong resistance at this 4/8 murray level located at 34,375 on the chart. We have drawn a circle so that you can observe that there is now strong resistance. To overcome and consolidate above this zone, the index could rise to the psychological level of 35,000.

On the other hand, a pullback to the support of the 21 SMA and the 200 EMA around 33,940 will be a good opportunity to buy. In the medium term, the trend remains bullish for the Dow Jones.

As long as #INDU remains above the key 33,900 level, the outlook remains bullish, and buoyant demand could enable the index to reach the 35,000 psychological level.

Our recommendation is to buy if it breaks the 4/8 of murray or if it makes a technical bounce off the 200 EMA. On the other hand, the eagle indicator is showing a sign of exhaustion and there could be a correction in the next few hours.

Support and Resistance Levels for May 25 – 26, 2021

Resistance (3) 34,714

Resistance (2) 34,608

Resistance (1) 34,539

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Support (1) 34,190

Support (2) 34,001

Support (3) 33,841