On the daily chart below, we can see that as the price rallied back into the resistance zone near the 34477, it got rejected and started to fall towards the 32684 support. The red long period moving average acted as resistance for the buyers and offered the sellers good entry Entry In financial trading, an entry is simply the point at which a trader enters the market by either buying or selling a certain asset. Entries have two attributes, i.e. the price at which the trader entered, and the time at which the trader entered.There are a number of different types of entry in trading. The most common one is the Market Order. A market order is a manual order, which allows the trader to enter the market virtually immediately upon demand, at the current market price. A trader typ In financial trading, an entry is simply the point at which a trader enters the market by either buying or selling a certain asset. Entries have two attributes, i.e. the price at which the trader entered, and the time at which the trader entered.There are a number of different types of entry in trading. The most common one is the Market Order. A market order is a manual order, which allows the trader to enter the market virtually immediately upon demand, at the current market price. A trader typ Read this Term points on pullbacks.

The main culprit for the selloff was the more hawkish repricing in interest rates expectations as US economic data this month surprised to the upside and made the market to reconsider an imminent Fed pause. On top of that, we had also the debt ceiling drama lately and the risk of a US default, although really small, weighed on the Dow Jones.

Dow Jones Technical Analysis

On the 4 hour chart below, we can see that amid a choppy price action, we still had some swing levels that the traders could lean onto. We had just one head fake above the 33535 when we got positive news on the debt ceiling front. Soon after though, we started to get negative headlines again and the Dow Jones began to roll over.

The market started to print lower lows and lower highs breaking below every swing low support and ultimately stalling at the 32684 support. We can notice that the buyers here are defending the level strongly as depicted by the multiple long candlesticks’ wicks. It’s likely that we’ll see a bounce here.

In the 1 hour chart below, we can see that the price started to consolidate right at the 32684 support and it looks like the Dow Jones wants to bounce here back into the 33000 support turned resistance. That’s a level to watch next. If the buyers manage to break above, then we should see 33300 next.

The sellers, on the other hand, should lean on that 33000 resistance to position for another fall towards the 32684 support targeting a breakout. Alternatively, if the price breaks below the support without a pullback, the sellers will be again in control and push the Dow Jones to new lows.