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DJIA – Bulls watch out for weak closing

DJ:DJI   Dow Jones Industrial Average Index
Daily Chart

Formation – Possible bearish price-RSI divergence

Resistance – 18,137, 18,188, 18288

Support – 17,977, 17,914, 17,796

  • A tinge of risk-off was seen in Europe, courtesy of oil price drop. Though oil has recovered there exists a risk-off fresh drop in case US government data shows a big build up in weekly inventory.
  • In such a case, the stock markets could follow oil lower and suffer weak closing.
  • That will confirm a bearish Price-RSI divergence on DJIA daily chart; something equity bulls need to watch out for.

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