Dow Jones – 10SMA holds consolidation for now but deeper pullback could be anticipated
Dow Jones is consolidating under fresh all-time high at 23555 posted earlier this week, with firm bullish structure remaining in play, despite strongly overbought daily studies.
The price is holding above rising 10SMA (23419) which tracks ascend in past two months and marks initial support.
Slow stochastic has already reversed on daily chart with overbought RSI and bearish divergence formed on RSI / MACD, suggesting that corrective action should be anticipated.
Initial trigger will be close below 10SMA which would open way towards next solid supports at 23283 (rising 20SMA) and 23270 (30/31 Oct higher base).
Break here would signal deeper correction.
Meanwhile, extended consolidation is seen as likely near-term scenario while 10SMA contains (10SMA is still heading north and showing no signs of fatigue) with fresh upticks not ruled out.
Res: 23535; 23555; 23777; 23936
Sup: 23419; 23283; 23200; 23160