Dow Jones facing strong resistance 9/2/2023

For the second session in a row, the Dow Jones Industrial Average collided with the pivotal resistance level published during the latest technical report at 34,180, which formed a strong selling point.

On the technical side today, we find the 14-day momentum indicator providing negative signals, stable below the mid-line 50. This comes in conjunction with negative features appearing on the momentum indicator.

With the stability of intraday trading below 34,140, and in general, below the pivotal resistance 34,190/34,180, the possibility of a bearish bias may exist, targeting 33,910 as a first target, and I would only fulfil this target, given the importance of the target level to the daily movements of the index.

Rising above 34,190 can ultimately thwart the downside attempts, and the index will recover so that we will be waiting for a positive session, with its initial target around 34,330.

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: 33910	R1: 34190
S2: 33760	R2: 34330
S3: 33620	R3: 34480