Dow Jones continues to achieve downward targets 18/8/2023

Large losses and negative movements dominated the movements of the Dow Jones Industrial Average on Wall Street yesterday, recording its lowest level at 34,490, surpassing the required target at 34,710.

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, motivated by the clear negative signs on the RSI, which settled below the mid-line of 50, in addition to confirming the breach of 35,000.

From here, with the stability of intraday trading below 34,850, and in general below 35,000, that encourages us to maintain our negative expectations, targeting 34,380 as a first target, knowing that breaking the mentioned level increases and accelerates the strength of the bearish trend, opening the door to visit 34,200.

Only from above, skipping upwards above 34,850, then 35,000 will immediately stop the suggested scenario and lead the index to recover, heading towards 35,120 & 35,300.

Note: the risk level may be high.

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: 34380	R1: 34845
S2: 34200	R2: 35130
S3: 33920	R3: 35310