Dow Jones: Neutrality Strengthens Around 44,000 Points

The Dow Jones Industrial Average has fluctuated within a 1% range over the past few trading sessions, encountering a neutral barrier near the 44,000-point zone.

For now, investors remain cautious as uncertainty grows amid trade and diplomatic tensions from the White House with multiple countries. This prolonged uncertainty has reinforced a neutral bias in recent price movements.

Persistent Neutrality
Currently, the Dow Jones remains trapped in a sideways range, with:

• 45,000 resistance at the upper boundary.
  
• 42,300 support at the lower boundary.
  
  

The price remains in the middle of this range, reinforcing the market’s indecision. As long as price action stays within this zone, the neutral structure may extend further in the coming sessions.

MACD Indicator

MACD movements confirm the current neutral market outlook. Both the MACD line and signal line remain oscillating near the 0 neutral zone.

The histogram also remains close to 0, indicating low momentum. As long as these conditions persist, price neutrality is likely to continue in the coming sessions.

Key Levels to Watch:

*45,000 – Key Resistance:

Upper boundary of the sideways range.
A breakout above this level could mark new highs, potentially reviving the long-term uptrend that has been stagnant in recent weeks.

*43,000 – Neutral Zone:

Converges with the 50-period and 100-period moving averages.
Also aligns with the 38.2% Fibonacci retracement level.

The most important short-term barrier that could limit any short-term bullish attempt.
If price fails to reclaim this level, bearish momentum could grow.

*42,000 – Critical Support:

Lower boundary of the sideways channel. A break below this level could create a stronger bearish bias, potentially threatening the long-term uptrend that has been in place since last year.



By Julian Pineda, CFA – Market Analyst