Dow eyes another run at a rally
DIA•The Dow Jones Industrial Average has rebounded but faces resistance between 52,180 and 52,591 after retreating from 52,317.32 on Tuesday. A close below 51,403 could put support near 49,800 to 50,547 in view.
1. Support and resistance
The Dow has found support near 51,043, the 38.2% retracement of its March-to-August rally. It slipped below that level briefly in late September and early October, but the declines did not last. Resistance begins near the 100-day moving average at 52,180, followed by the September 22 high of 52,319.01, a retracement level at 52,458 and the falling 50-day moving average near 52,591.
2. Levels to watch
A close above the resistance cluster would put the August highs back in view. On Tuesday, the Dow reached 52,317.32 before retreating to close at 51,670.10. A close below 51,403 would make the recovery look shaky, with possible support near 50,547 to 50,388; below that, levels around 49,800 to 49,909 could come into play.
