The Dow Jones Industrial Average futures asset is currently down 384 points on the day as traders digest the poor ISM Manufacturing Data. The results were lower than the previous figures and therefore point to a progressive worsening of economic conditions for US manufacturing.
The US-China trade war has continued to linger and although there is enthusiasm over the meeting to hold shortly between both sides, there is very little concrete stuff on ground to cool tensions as well as the nerves of investors.
The Dow Jones average is currently trading at 26,595 and continues to remain under pressure.
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Technical Play for the Dow Jones Industrial Average
The long-term charts show that after reaching all time high levels in July 2019, the Dow Jones has formed lower highs. This is a sign that the uptrend has stalled and that a top may have been reached.
Price action from December 2018 is now locked in a rising wedge formation, with price action gradually inching its way down from the progressively lower tops of July and September. In the long term, there could be room for more downside. This may extend to the 26,150 level, which is where the horizontal line connecting the November 2018 and February 2019 highs is expected to make contact with the lower wedge border.
Below this level, further long-term support exists at the 25399 price area (March 10 and August 26 weekly candle lows). However, a rejection at the lower border of the rising wedge would open the door for resumption of the uptrend, at least until the 26,978 resistance (Sept 30, 2018 and September 29, 2019 highs).