Markets tend to move off of support and resistance. Whenever price finds an area that acts as support, typically price moves up until it hits resistance. When price finds resistance, it will typically move down until it finds an area that will support it. Some traders refer to this constant movement between support and resistance as waves.
In this video, Gail Mercer (founder of TradersHelpDesk) shows the current support and resistance areas on both the emini Nasdaq and Dow Jones charts for this morning.
The emini Nasdaq has been moving between two major areas of support and resistance. The lower support line is around 6047.75 and the upper resistance line is around 6073.25 and 6082.50. With the Stochastics currently in an overbought status, a move to the downside is likely.
The emini Dow Jones is beginning to move up and the first line of resistance looks potentially at 22,786, followed by 22,794 and 22,805. The lower potential support area is at 22,770.
Additionally, with the FOMC meeting minutes being released at 2:00 pm today, price on both instruments could stay within these levels of support and resistance until after the minutes are released.
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