Dow Jones extends its losses 27/10/2023

As we expected, the Dow Jones Index suffered significant losses on the New York Stock Exchange yesterday with a negative outlook. It touched the first official target station at 32,940 and approached the second target of 32,820 by a few points, recording its lowest price of 32,837.

On the technical side today, by looking at the 4-hour time frame chart, we find that the negative intersection of the moving averages still constitutes a negative pressure factor on the index, and this comes in conjunction with the clear negative signals on the 14-day momentum indicator.

From here, with the stability of intraday trading below the resistance level of 33,085, the bearish bias is most likely during today’s session, targeting 32,810 as the first target. Breaking it increases and accelerates the strength of the daily bearish trend as we wait for 32,730.

Only from above is the return of trading stability above 33,085, postponing the chances of a decline, and we may witness movements tending to the positive to retest 33,175.

Note: Today we are awaiting high-impact economic data in the US, the Core Personal Consumer Expenditure Price Index and we may witness high volatility.

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: 32805	R1: 33175
S2: 32640	R2: 33375
S3: 32435	R3: 33545