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The Dow Jones Industrial Average (DJIA) experienced mixed movements in the previous session, briefly dipping towards the downside target of 39290 before rebounding to test the 39630 resistance level.
Technical Outlook:
On the 60-minute chart, the index is currently holding above the 39630 resistance level, which has now transformed into a support level after being breached. The simple moving averages (SMAs) are providing positive momentum, and the 14-day momentum indicator is showing bullish signals, suggesting a potential upward trend.
Upward Potential:
With the current bullish momentum and the price holding above 39530 (previously breached resistance turned support), the upward trend is likely to continue. The initial target is 39785, with potential for further gains towards 39920.
Downside Risks:
However, traders should remain cautious. A close below 39530 on the hourly chart could invalidate the bullish scenario and trigger a decline, potentially targeting 39430 and 39210.
Key Levels:
- Support: 39530, 39430, 39210
- Resistance: 39630, 39785, 39920
Important Note:
The release of high-impact U.S. economic data today, specifically the ADP Non-Farm Employment Change report, could induce significant price volatility. Traders should closely monitor the market’s reaction to this data.
Disclaimer: Trading in CFDs carries inherent risks, and all scenarios are possible. This analysis is not investment advice but rather an interpretation of the current technical landscape for the Dow Jones Industrial Average.
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