Dow rally is losing upside momentum
Having briefly traded in 4-month highs at 43,183, the Dow Jones Industrial Average is beginning to lose upside momentum as traders digest Federal Reserve (Fed) Chair Jerome Powell’s remarks and look forward to US-Iran talks.
While Wednesday’s low at 42,871 holds, immediate upside pressure remains in play with a rise above this week’s 43,183 high possibly engaging the late December high at 43,374.
Were Wednesday’s low at 42,871 to be slipped through, though, the 200-day simple moving average (SMA) at 42,551 may be revisited.
Further potential support sits at the 5 June low at 42,212 and Monday’s 41,981 low. Then there is minor support around the late May low at 41,828 and the 15 May low at 41,778.
Critical support for the long-term uptrend remains to be seen at the 23 May low at 41,354, only a fall through which may lead to a much deeper correction taking place.