The Dow Jones Industrial Average could sink towards 7,500 points if it doesn’t start to rise very quickly, Sandy Jadeja, chief market strategist at ODL Securities, told CNBC.
“The Dow right now is sitting on a key support level,” Jadeja said. “If we are going to see higher prices, this Dow needs to start moving towards the upside very quickly,” he said.
“Otherwise we are going to start seeing 7,800, 7,500 (points), levels we haven’t seen for a very long time,” he warned.
The index is in a consolidation phase at the moment and is yet to give a clear indication as to whether the next move will be higher or lower, but the risks are still to the downside, Jadeja said.
The price of oil could also be headed down, according to Jadeja. “I would not be surprised if we start seeing $27 on crude oil,” he said. Watch the video above for full details.
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