Dow Jones Facing Profit-Taking

We committed to the intraday neutrality during the previous analysis due to the high level of risks of trading in the Dow Jones Industrial Average, a bearish tendency, indicating that in the event that 34,490 breaks are confirmed, we may witness a bearish bias targeting 34,410, to record the index as low as 33,980.

On the technical side, today, with negative pressure coming from the 50 day moving average, which is accompanied by negative signs coming from the RSI on short time frames.

Consequently, we may witness a bearish tendency during today’s session targeting 34,080 first target, and then 33,870/33,860 next stop, bearing in mind that breaking the latter extends the index’s losses so that the way is directly open towards 33,595.

From the top, the return of trading to stability above the previously broken support 34,520 will stop the bearish scenario and recover the index with initial targets starting at 34,890.

Note: The risk is high.

S1: 34495	R1: 34890
S2: 34360	R2: 35140
S3: 34110	R3: 35275