Dow Jones: negativity in place 30/8/2022

A strong resistance level at 32,280 limited the Dow Jones’ attempts to recoup the losses last week and forced it to trade within the bearish trend.

On the technical side, we tend in our trading to the negative, relying on the clear negative signs on the 14-day momentum indicator on short intervals and the index’s price stability below the 32,280 resistance level.

Therefore, we maintain our negative expectation, knowing that a decline below 32,100 enhances the chances of a drop. We are waiting to touch 31,970 first target, and breaking it will extend the index’s losses to 31,770.

Crossing up and rising above 32,280 might stop the bearish trend temporarily, and we will witness the formation of a minor upward correction with its initial target 32,325.

Note: the US “Consumer Confidence” is due today and has an important impact, and we may witness price fluctuations.

Warning: the risks are high.

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: 31970	R1: 32325
S2: 31770	R2: 32490
S3: 31610	R3: 32680