Dow Jones incurs strong losses and the negative pressure continues 16/9/2022

The Dow Jones Industrial Average incurred heavy losses on Wall Street yesterday, within the negative outlook, as we expected within a strong negative creep towards our target 30,820, to be satisfied with recording the lowest 30,860.

Technically, we tend to the negativity based on the clear negative signs on the 14-day momentum indicator on the 60-minute time frame, in addition to the continuation of the negative pressure of the simple moving averages.

With the price pivoting below 31,000, and most importantly 31,100, the bearish trend remains the most preferred, knowing that breaking 30,860 increases and accelerates the strength of the bearish trend, opening the door to visit 30,820 and 30,695, respectively. As a result, the bearish targets may extend later towards 30,520.

From above, consolidation above 31,100 leads the index to a temporary recovery, and we witness a retest of 31,220.

Note: 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: 30695	R1: 31220
S2: 30520	R2: 31560
S3: 30175	R3: 31740