FX.co ★ Trading signals for Dow Jones 30 (#INDU) on February 7-8, 2022

The companies that make up the Dow Jones-30 Index (#INDU) are concerned about the higher interest rates that the Fed will increase in March.

This has caused the DJ30 to drop below the 200 EMA and below the 5/8 Murray. Currently, it is trading 35,058 with a bearish bias.

On the 4-hour chart. we can see that the DJ30 leaves a false break above the 200 EMA at 35,430 points. It is now moving away from this level towards the support of 34,400.

On February 3, the eagle indicator has reached the zone of 95-point which represents extremely overbought. A technical correction below the 200 EMA is expected in the next few hours with targets towards 4/8 Murray around 34.375.

On January 24, after falling to a low of 33,150, the Dow Jones 30 rebounded strongly/ It is now showing signs of exhaustion. Any pullback towards the resistance zone of 35.346 or towards the top of the bearish channel will be an opportunity to sell.

This technical bounce reached the zone of 6/8 Murray, from that zone it is retracing and forming an uptrend channel. For the next few days, a technical rebound is expected around 34,375.

Our trading plan is to sell below the 200 EMA with targets at 35,000 and to the bottom of the uptrend channel around 34,375. The eagle indicator supports our bearish strategy.

Support and Resistance Levels for February 7-8, 2022

Resistance (3) 35,339

Resistance (2) 35,156

Resistance (1) 35,073

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Support (1) 34,797

Support (2) 34,524

Support (3) 34,375

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Scenario

Timeframe H4

Recommendation: sell in case of pullback at

Entry Point 35,346

Take Profit 34,700; 34,375

Stop Loss 35,450

Murray Levels 35,937 (6/8) 35,156 (5/8) 34,375 (4/8) 33,593 (3/8)

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