Dow Jones Faces Selling Pressure 12/4/2022

The Dow Jones Industrial Average declined significantly during the previous session’s trading to reflect the previous analysis, touching the stop-loss order published during the last analysis at 34,400; declining below 34,440 could thwart the bullish scenario completely and lead the index to enter a descending wave with the official target is around 34,170, recorded a low at 34,178.

On the technical side, the RSI has stabilized below its mid-line 50, and the strong negative pressure comes from the simple moving averages.

This makes the bearish scenario the most likely, but on the condition that we witness a clear and strong break of the pivotal support level 34,170, extending the index’s losses to visit the first official station 34,065. It should be noted that the stability of trading below 34,065 increases the strength of the daily bearish trend to head the price of About 33,920.

Remind that daily trading stability and the price pivot below 34,500 are essential conditions for activating the proposed scenario and breaking it, leading the index to a temporary recovery to retest 34,700.

Note: CFD trading involves high risk; all scenarios may occur.

S1: 34065	R1: 34500
S2: 33910	R2: 34780
S3: 33630	R3: 34940