Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The Dow Jones Industrial Average deviated from the anticipated upward trajectory, failing to maintain stability above 38,300 as previously expected. Instead, it broke below this level, potentially signaling a retest of the primary support at 38,240 and reaching a low of 37,925.
Today’s technical analysis suggests a preference for a downward trend, particularly as the index strongly breached the 38,240 support level. Additionally, negative signals are evident on the 14-day momentum indicator.
As long as daily trading remains below the previously broken support, which now acts as a resistance level, at 38,240, the target is set at 37,770 as the next key level of support.
Conversely, if the index manages to stabilize above 38,240, it may have an opportunity to mitigate its losses and potentially revisit 38,450.
Investors should exercise caution today as high-impact economic data is expected from the American economy, including the change in private non-agricultural sector jobs, the Federal Reserve Committee statement, interest rate decision, and a press conference by the Chairman of the Federal Reserve. These events may lead to increased price volatility.
Given the elevated level of risk, which may not necessarily correspond to the expected return, investors should carefully assess their positions. Additionally, ongoing geopolitical tensions may contribute to heightened price fluctuations.
Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.
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