The Dow Jones Industrial Average (DJI) enters trading Wednesday on a nine-day losing streak, the longest stretch of consecutive daily declines ꦿfor the blue chip index sꦗince 1978.

The slump, which equates to nearly 1,600 points, comes after the index cloꩲsed above the closely watched 45,000 level for the first time on Dec. 4 following an extended post-election rally fueled by expectations of a market-friendly White House and Congress.

Despite the recent losing streak, the index is still up 15% in 2024. However, that return significantly underperforms the 澳洲幸运5官方开奖结果体彩网:S&P 500’s 27% gain and the 澳洲幸运5官方开奖结果体彩网:Nasdaq Composite’s 34% jump over the same period due to the Dow's smaller exposure to mega cap tech companies.

Below, let's break down the 澳洲幸运5官方开奖结果体彩网:technicals on 🌼the Dow’s chart and point out important chart levels that investors may be watching out for.

Ascending Channel in Focus

The Dow has tracked higher within an orderly 澳洲幸运5官方开奖结果体彩网:ascending channel since late July, with the index tagging the pattern’s upper and lower trendlines several times to establish easily identifiable 澳洲幸运5官方开奖结果体彩网:support and resistance areas.

More recently, the index has trended lower after running into resistance near the channel’s top trendline earlier this month, raising the possibility of a potential 澳洲幸运5官方开奖结果体彩网:breakdown.

While the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) confirms weakening momentum, it’s worth noting that the lastᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚ time the indicator flashed a similar reading in late October, the Dow went on to rally 6% over th𒁃e next seven trading sessions.

Let’s look at three major levels on t💖he chart where the index could encounter support and also point out a key overhead area to watch duri♌ng upswings.

Major Support Levels to Watch

The most immediate level to watch sits around 43,300. This area, just below the index’s latest close of 43,450, finds a 澳洲幸运5官方开奖结果体彩网:confluence of support from the ascending channel’s lower trendline, the upward sloping 澳洲幸运5官方开奖结果体彩网:50-day moving average, the October 澳洲幸运5官方开奖结果体彩网:swing high and the November 澳洲幸运5官方开奖结果体彩网:swing low.

A decisive breakdown below the ascending channel could see the index fall to the 41,600 level. Investors who trade the index could look for buying opportunities near the prominent late August peak and early November trough.

An extended downside move could see the index revisit the 澳洲幸运5官方开奖结果体彩网:psychological 40,000 level, a 🔴region where it would likely encounter support near a long-term trendline that links various swing highs and swing lows on the chart between March and September.

Key Overhead Area to Monitor During Upswings

During upswings, investors should closely monitor the key 45,000 level. The index could run into overhead resistance in this area near the upper range of a series of 澳洲幸运5官方开奖结果体彩网:candlesticks positioned around the Dow’s 澳洲幸运5官方开奖结果体彩网:all-time high (ATH).

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