Dow Jones Anticipates Temporary Decline 7/11/2023

The Dow Jones Industrial Average encountered a significant resistance level at 34,230, a point we highlighted in our recent analysis. This level proved instrumental in limiting the ongoing upward trend.

Today’s technical analysis indicates a potential intraday correction. With intraday trading persisting below 34,190 and, more crucially, below the key resistance level at 34,230, a negative bias is supported. Additionally, early signs of negativity have surfaced on the Stochastic indicator, adding weight to the bearish outlook.

In the hours ahead, we might observe a bearish trend, with the initial target set at 34,010. A successful breach of this level could intensify the downside pressure, potentially leading the index to the second target at 33,950.

However, a breakout and consolidation above 34,230 would negate the short-term bearish scenario. In such a scenario, the index could regain momentum, targeting levels at 34,295 and 34,365.

Traders are cautioned about the high level of risk in the current market environment, characterized by ongoing geopolitical tensions, which could result in 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.

S1: 34010	R1: 34190
S2: 33940	R2: 34295
S3: 33840	R3: 34365