Dow outlook – strong resistance at 17,635

Dow.png

Dow’s rally following a double bottom breakout has left the index overbought as per daily RSI, thus a loss of momentum is expected  and the index may see consolidation with downside bias.

Continuation of the rally appears likely only if prices see a convincing close abv 17,635 (sideways channel resistance).

Technical correction could see prices test 10-DMA currently seen at 17,386 levels.

 

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