Dow Jones and Nasdaq 100 on the edge: Key support levels tested as pullback looms
Critical support levels in focus as Dow Jones and Nasdaq 100 signal potential market reversal.
The Dow Jones Industrial Average stands at a pivotal moment, signalling a potential pullback. Friday's close near the critical 41,810 support level, tested repeatedly since September 2024, underscores its importance. A breach below this level could activate the reversal pattern seen on the chart, driving prices to the middle of the 4-year price channel. Conversely, holding above 41,810 opens the door for another attempt to retest the 43,180 resistance, which has already failed twice, as noted in the December 26 analysis.
Dow Jones price chart
Nasdaq 100 price chart
Similarly, the Nasdaq 100 is walking a fine line, hovering around the 20,641 major support zone in the weekly time frame. The recent two weeks of poor performance and signs of price exhaustion call for heightened vigilance. A breakdown at this critical level could spark a deeper correction.
Traders and investors should stay alert and prepared, as these key levels will shape the market's direction in the coming weeks. Monitoring price action closely is paramount to navigating potential volatility.
Author
Denis Joeli Fatiaki
Independent Analyst
Denis Joeli Fatiaki possesses over a decade of extensive experience as a multi-asset trader and Market Strategist.
