Dow Jones Breaks Through Support, Negativity Remains

Significant negative trades dominated the Dow Jones Industrial Average on the New York Stock Exchange, recording its lowest level during the previous session’s trading, 33,603.

On the technical side today, and with a closer look at the 60-minute chart, we find the RSI continues to defend the downside, and this comes in conjunction with the negative pressure coming from the 50-day moving average.

From here, the bearish scenario will remain valid and effective targeting 33,550/33,540 as a first target, bearing in mind that breaking the aforementioned level extends the index’s losses so that the road is directly open to visit 33,360 next official stations.

Activating the suggested scenario requires stability below 33,975, and a breach of it is able to thwart the bearish scenario and lead the index to the upside path, with an initial target of 34,220.

Note: the level of risk is high.

S1: 33545	R1: 33975
S2: 33360	R2: 34220
S3: 33310	R3: 34410