Dow Jones awaits one of the scenarios 6/7/2022

The Dow Jones Industrial Average declined significantly during the previous trading session, achieving losses that extended to 30,330s.

On the technical side, the negativity is still dominating the stochastic indicator today, coinciding with the negative pressure of the simple moving averages supporting the decline. On the other hand, we find the 14-day momentum indicator trying to provide positive signals on the short time frames.

With technical signals conflicting, we prefer to monitor the price behaviour during the coming hours, waiting for one of the following scenarios:

If the index manages to maintain trading above 30,650, we may witness a bullish bias that aims to retest 31,230

A decline below 30,650, resuming the decline to target 30,400 initially.

Note: the level of risk is high.

Note: The Fed’s statement is due today and could lead to some volatility

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.

S1: 30400	R1: 31275
S2: 29930	R2: 31680
S3: 29520	R3: 32155