Dow Jones extends gains 26/10/2022

The Dow Jones Industrial Average witnessed a positive trading session within the continuation of attempts to form a bottom, recording its highest level during the previous session’s trading at 31,870.

Technically, we find the 50-day simple moving average that provides a positive stimulus and is motivated by the continuation of the RSI’s defence of the daily bullish trend on the 60-minute time frame.

From here and steadily intraday trading above the 31,460 support floor, the bullish bias is most likely during the day, provided that we witness a clear and strong breach of the 31,870 resistance level, which is a catalyst factor that enhances the chances of touching the psychological barrier 32,000. The intraday range and its penetration opens the door for the index to visit 32,220 initially.

Activation of the proposed scenario depends on the stability of trading above 31,460, and, most importantly 31,430, and breaking the latter can thwart the proposed scenario. We are witnessing selling, targeting 31,080.

Note: The risk level 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: 31425	R1: 32000
S2: 31080	R2: 32220
S3: 30850	R3: 32560