Yesterday session had seen a last hour sell off but it still managed to stay above 23500 support level. So far, it is still within a trading range between 23600–24150. A bounce back from 23750 support level could see a continuation of up momentum to test 24150 resistance level. Likewise, a rejection from 24150 could form a short entry, based on identifying support and resistance levels for swing trading.
On higher timeframe, it is also within trading range between 23000–24250. From a swing trading point of view, I anticipate Dow to test the targets at higher level (swing high at 24750) once it can commit above 24150. A break below 23500 could a test at lower levels 23000–23300.
Below are the potential long setup for Dow Jones index (DJI) for trading session on 7 May 2020 when there is a bounce up at 23650-23750.
Entry: long limit order at 23750
Stop loss: 23500
Take profit: 24150, 24400
For potential short setup if there is a rejection near 24150:
This post from May 7th appears to be the charts this morning, are you expecting the market to rally because the past 4 hours has been testing 23200-23300
mingjong
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@ms_umm_umar, weird, post from last week...but the levels are still relevant...I am bearish on the indices as they are still in reaction mode...
a rally up to 23500 should hit the resistance....But 23000 can provide some support.