DJIA made a new 6-week low, approaching key support at 15704

DJIA extended the decline off Tue’s 15946 high to break below Monday’s 15784 low, confirming a lower high at the former. With the daily MACD/Stochastics still weakening, further losses remains favored to retest the 15704 reaction low (12 Dec), near the 15710 prior peak (18 Sep) and 50% retracement of the 14719/16588 upleg. Below there would open the support cluster including15522 range low (5 Nov), the 200 day moving average (black line) and 61.8% retracement of the 14719/16588 rise.

However, an upside reversal above 15946 would delay bears and open 16141 (23 Jan low), relieving the oversold condition. Only clearing the falling 50 day moving average (brown line)/16241 (13 Jan low) strong resistance area would improve the outlook and stabilize for 16521 (21 Jan high). 

 

Resistance:

*** 16588 (31 Dec record high)

**16521 (21 Jan high)

**16241 (23 Jan swing low)

**16141 (23 Jan swing low) near the 50 day moving average (brown line.)

*15946 (28 Jan high)

 

Support:

***15704 (12 Dec reaction low)/15710 (18 Sep peak), near 50% of the 14719/16588 upleg

*15522 (5 Nov low), near 61.8% of the 14719/16588 upleg and 200 day moving average (black line)

 

 

***very very strong level**very strong*strong