We can see that price recently broke through the trend line, but immediately got rejected at 34746, which was around the resistance level from 21st April. Signifying that there's a strong bearish presence at that level.
Now price had retraced back to the trend line and upon touching it, we can see that the bullish momentum is not as strong as the bearish one we saw at 34746, signifying that the trend line might be too weak to act as support.
I have a bearish bias on the Dow, I think that the next movements of price will be either:
Scenario 1: Hug along the trend downwards, towards 31929 which was around 31st of May high, turning that resistance into support. 31929 is also at a 50% fib retracement level, which can act as a stronger level of support for bullish momentum.
Scenario 2: If price breaks below 31929, we might see price heading towards 29727, which was around the low of 17th June, which might act as a support level
Scenario 3: If price breaks below 29727, we might see it heading towards 28539, which was around the low of 3rd Oct, and 13th Oct, which might act as a strong support level
Now price had retraced back to the trend line and upon touching it, we can see that the bullish momentum is not as strong as the bearish one we saw at 34746, signifying that the trend line might be too weak to act as support.
I have a bearish bias on the Dow, I think that the next movements of price will be either:
Scenario 1: Hug along the trend downwards, towards 31929 which was around 31st of May high, turning that resistance into support. 31929 is also at a 50% fib retracement level, which can act as a stronger level of support for bullish momentum.
Scenario 2: If price breaks below 31929, we might see price heading towards 29727, which was around the low of 17th June, which might act as a support level
Scenario 3: If price breaks below 29727, we might see it heading towards 28539, which was around the low of 3rd Oct, and 13th Oct, which might act as a strong support level