Dow Jones May Have a Temporary Drop

The current movements of the Dow Jones Industrial Average are witnessing a slight bearish tendency, as a result of hitting the resistance level of 34,640. On the technical side today, and with careful consideration on the short time frames, we find that the RSI tends to the negative, in addition to the stochastic losing the bullish momentum gradually.

Therefore, we may witness a bearish tendency in the coming hours, provided we confirm breaking 34,450, targeting 34,380 first target, knowing that price stability and confirmation of the last break puts the index price under negative pressure, with a second target 34,290.

Activating the bearish temporary scenario requires trading stability below 34,590, and its breach leads the index to the official bullish track, heading to visit 34,725, and gains may extend later towards 34,800.

Note: the risk level is still high.

S1: 34380	R1: 34595
S2: 34290	R2: 34725
S3: 34160	R3: 34815