Despite a harsh fall in the US Dollar, US Indices are starting the week on a rally, with a seemingly positive sentiment all around.
The past week's University of Michigan Consumer Sentiment survey had came in slightly worse than expected but showing better outlooks from firms in terms of expected impact and inflation from tariffs, coupling with a more than decent earnings season and renewed Dovish comments from Waller.
The ongoing bull momentum is countering the profit-taking seen on Friday.
Both the Nasdaq and S&P 500 are making all-time highs again while the Dow is still within its range, therefore let's take a look if the roof-breaking momentum in Tech can ripple through the more-industrial focused Dow to bring it back to its highs.
Read More: The US Dollar falls off to start the week
Dow Jones Multi-timeframe Technical Analysis
Dow Jones 1H Chart
Dow Jones 1H Chart, July 21, 2025 – Source: TradingView
As I write, buyers are pushing above 44,550 going towards last week's 44,702 intermediate highs.
A failure to retest the lows of the range on Friday gives more odds of at least a retest of the monthly highs (44,913) and some decent probabilities of an upside breakout as long as buyers hold the upward trendline form last Wednesday.
The action was more mixed in the past week and buyers seem to be taking the hand as prices are breaking out of the July decending channel within the range.
Keep an eye at the levels mentioned above as key barometers, any break below Friday's 44,213 lows would give the hand back to Sellers on short timeframes.
Dow Jones 4H Chart
Dow Jones 4H Chart, July 21, 2025 – Source: TradingView
Taking a step back demarks the rangebound action in the Dow with more clarity – The 44,000 Zone (+/- 150 points) that was marked as key pivot can now be determined as support as prices keep bouncing off these levels.
The momentum is decent but will have to overcome Friday's highs to genereate even more traction, which shouldn't be too big of a deal as long as US President Trump does not appear with Market-scaring headlines.
Levels to place on your charts:
Support Levels:
- 44,400 Immediate Pivot (above bull, below bear) – Confluence with 4H MA 50
- 44,000 Pivot turned Support
- 43,000 Main Support Zone
Resistance Levels:
- 44,600 Mini-resistance (Friday Highs)
- 44,800 to 44,910 July Highs
- 45,060 All-time highs
Safe Trades and Successful week!
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