Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The Dow Jones index experienced a significant decline during yesterday’s morning session, aligning with the negative outlook anticipated in the previous report. It touched the official target levels, reaching a high of 38880 and subsequently dropping to a low of 38,790.
Upon approaching the support represented by the 38,875 target, the Dow Jones index initiated an upward rebound, leading to a retest of 39000. Upon closer examination of the 4-hour chart, we observe that the 14-day momentum indicator has reverted to supporting the upward trend. Additionally, the simple moving average is showing signs of providing a positive impetus.
Our stance leans towards positivity, albeit cautiously, contingent upon daily trading stability above 38,860. The initial target stands at 39,070, with the potential for further acceleration upon breaching this level, aiming for 39,145. Subsequent gains may extend towards 39,240.
It’s imperative to note that a breach below 38,860 would promptly nullify the proposed scenario, signaling a shift towards a downward trend. In such a scenario, targets would commence at 38,720, with further potential decline towards 38,650.
A word of caution: Today’s trading activity may experience heightened volatility due to the impending release of high-impact economic data from the American economy, including the annual and monthly basic personal consumption spending prices, along with the weekly unemployment benefits. Traders should brace themselves for potential market fluctuations during this period. Additionally, the ongoing geopolitical tensions pose a high level of risk, contributing to the possibility of increased 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.
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