Dow Jones, being the index of the 30 top-performing U.S. companies, has been in range in the past few months, with the all-time high at $35,260. In January 2021, the Dow Jones passed the psychological level at $30,000 for the first time.
IN January 2020, Price tried to reach $30,000 but the bears pushed the price lower. Since March 2020, Dow Jones has been on a bullish run from its then $20,000, that approximately 75%. Prices of many stocks in the US have reached new all-time highs after the pandemic. There have been rising cases of covid-19 across the world, and especially with the USA having an average of over 100,000 new cases per day.
If covid-19 cases cannot be controlled in the next few months despite vaccines being administered, stock prices might begin to fall across the world and lockdown might be re-imposed. The next major support of $DJI could be around $26,900 if the price falls. As the price of $DJI crosses $33,000, RSI indicated that the price has been overbought, though the bulls still pushed the price higher to reach $35,000. The last time RSI showed that price has been overbought, the price of $DJI was below $30,000 which resulted in about a 40% dip in price.
Price still maintained the higher part of the Bollinger bands, though, in June, there was an indication of a reversal in price, as the price fell to $33,100 from $34,900. Companies in Dow Jones with the highest losses in July were Verizon with 5.9%, Walt Disney 2.5%, and Merck 3.1%. If the price of $DJI fails to break the resistance level at $35,260, the price might fall and might be catastrophic for the investors.