Dow Jones may witness a temporary decline 6/2/2023

Limited attempts to rise dominated the movements of the Dow Jones industrial index on the New York Stock Exchange after the US jobs data showed a clear improvement, as Dow Jones recorded its highest level of 34,185.

Technically, we tend to be negative in our trading, but with caution, relying on the stochastic indicator’s gradual loss of bullish momentum, which comes in conjunction with the 50-day simple moving average’s attempts to pressure the price from above.

With the index price stabilizing intraday below 33,970, we may witness a bearish trend in the coming hours, with the first target of 33,770. Therefore, the price behavior should be closely monitored around this level, because breaking it pressures the index price to wait for 33,670 next station.

Activating the suggested bearish scenario depends on the stability of intraday trading below 33970, and the price’s consolidation above it is able to thwart the bearish tendency, and the index will recover again, heading to visit 34085 and 34180, respectively.

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: 33675	R1: 34085
S2: 33520	R2: 34340
S3: 33260	R3: 34495