Resistance - 17,539-17,544, 17,640, 17,698
Support - 17,418, 17,280, 174,149
- Dow's rejection at 55-day EMA at 17,544 yesterday followed by a negative day end closing at 17,492 levels indicates the bulls are likely to remain at the bay and the prices could drop to 17,330 levels.
However, futures indicate the index is likely to open higher around 17,570 levels.
Still, the bear grip is likely to stay intact as long as prices do not see a day end closing above head and shoulder neckline resistance at 17,640 levels.
Traders should watch out for a failure to hold above 17,539 levels could translate into a drop to 17,330 levels.