The Dow Jones Industrial Average slipped in the March 28 session as selling pressure intensified, pushing the index narrowly below the support of the 200-day moving average located at 32,356 points.
Over the past two weeks, the Dow has battled fiercely up and down with the 200-dma, which represents a significant technical milestone where traders are concentrating their attention to gauge the index’s future moves.
Dow Jones Industrial Average (DJI) 1-day – Chart: TradingView
What’s Moving The Dow?
The Dow’s negative daily performance was mostly dragged down by its heavyweights such as UnitedHealth Group Incorporated (NYSE:UNH), which fell 1.6%, Microsoft Corp (NASDAQ:MSFT), which fell 1.4%, and American Express Corporation (NYSE:AXP), which fell 2.5%.
In contrast, Boeing Company (NYSE:BA) and Chevron Corporation (NYSE:CVX) offered some positive contribution to the Dow’s overall performance.
DJIA movers on March 28 – Chart: TradingView
Technical Analysis: What’s Next For DIA?
The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) is the most popular exchange traded fund tracking the performance of the Dow Jones Industrial Average, by using a full replication technique.
Looking at the daily chart, the short-term trend pendulum seems to be swinging to the sellers’ side, as the 14-day relative-strength index (RSI), a key momentum indicator, has not broken above the 50 mark since mid-February.
DIA has currently retraced about 40% of the October-December 2022 low-to-high range.
If the DIA successfully breaks below the 200-dma support, the next critical technical support level would be between $315 (March 15 low) and $317.40 (50% Fibonacci retracement and November 2022).
This region might be tested in the coming days, if the overall risk sentiment remains fragile. Should sellers prevail there, a drop to $310 (61.8% Fibonacci retracement) would then be likely.
SPDR Dow Jones Industrial Average ETF Trust (DIA) 1-day – Chart: TradingView
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