US equities fluctuated over the course of the trading session on Monday after failing to sustain an initial move to the upside. The Dow slid 127 points or 0.5% to 25,317. Traders expressed some uncertainty about the near-term outlook for the markets following recent volatility. A lack of major US economic data also kept some traders on the sidelines ahead of the release of reports on new home sales, durable goods orders, and consumer sentiment in the coming days.
Prices are trading close to the key technical and psychological support level at 25,000. However, the RSI looks extremely bullish signaling oversold conditions and therefore a move upward is expected from here targeting the trendline. Moreover, the last candlestick on the hourly chart looks like an Engulfing Bottom Pattern which is both known as a bullish pattern.
Support: 25100 25000
Resistance: 25640 26250