Source: PaxForex Premium Analytics Portal, Technical Insight

The U.S. stock indices did not show a single trend at the end of trading on Tuesday after a sell-off in the U.S. stock market the day before. The fall of the Dow Jones on Monday was the highest since the beginning of September - 2.29%. Data on new cases of coronavirus infection in the USA continue to exert pressure on the market. As of Monday, the average number of new infections in the U.S. over the past seven days was a record of 69.97 thousand per day, reports CNBC, citing data from Johns Hopkins University.

Dow Jones 30, H4

Pivot: 27480.00

Analysis:

Provided that the index is traded below 27870.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 27480.00
• Take Profit 1: 27080.00
• Take Profit 2: 26700.00

Alternative scenario: 

In case of breakout of the level 27870.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 27870.00
• Take Profit 1: 28120.00
• Take Profit 2: 28560.00

Comment:

RSI indicates a downtrend during the day.

Key levels:

Dow Jones 30, D1

Pivot: 27549.00

Analysis:

While the price is above 27200.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 27549.00
• Take Profit 1: 29550.00
• Take Profit 2: 30800.00

Alternative scenario:

If the level 27200.00 is broken-down, follow the recommendations below.

• Time frame: D1
• Recommendation: short position
• Entry point: 27200.00
• Take Profit 1: 26540.00
• Take Profit 2: 25950.00

Comment:

RSI is bullish and indicates further increase.

Key levels: