Dow Jones is witnessing further declines 17/8/2023

The Dow Jones Industrial Average incurred significant losses in the New York Stock Exchange yesterday, within the expected bearish context, approaching a few points away from the first target published during the previous report at 34,840, recording its lowest level at 34,840.

On the technical side today, and with a closer look at the 4-hour chart, we find that the simple moving averages continue to exert negative pressure on the price from above, stimulated by a decline in the clear momentum on the 14-day momentum indicator in addition to confirming the breach of 35,000.

From here, with the stability of intraday trading below 35,000, and most importantly, 35,100, the bearish scenario remains the most preferred, targeting 34,710 as a first target, knowing that breaking the mentioned level increases and accelerates the strength of the bearish trend, paving the way for the index to visit 35,540.

Only from above, skipping upwards above 35,000, then 35,100 will immediately stop the suggested scenario and lead the index to recover, heading towards 35,360 & 35,530.

Note: Today we are awaiting high-impact economic data issued by the US economy, “unemployment benefits” and may witness high price 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: 34710	R1: 35110
S2: 34540	R2: 35360
S3: 34295	R3: 35530