Dow Jones dives 1/7/2022

The Dow Jones Industrial Average incurred heavy losses within the expected bearish directional movement during the last analysis, touching the official target station during the previous analysis at 30,690, recording its lowest level at 30,404.

Technically and carefully considering the 60-minute chart, we find that the RSI continues to defend the bearish moves, in addition to the index’s pivot below the resistance level of 30,770, most importantly 30,830.

Therefore, the daily bearish trend is still valid and active, knowing that the decline below 30,400 can enhance the index’s losses, so we are waiting for 30,265 first target, and the bearish targets may extend towards the areas of 30,050 waiting station as long as trading is stable below 30,830.

The level of risk is 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: 30265	R1: 30830
S2: 30050	R2: 31180
S3: 29700	R3: 31395