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The Dow Jones Index temporarily reversed the expected downward trend during yesterday’s American trading session, touching the stop losses published during the previous technical report at 34,900. As a reminder, we indicated that the price’s consolidation above 34,900 nullifies the activation of the bearish scenario, leading the index to retest 34,985 and 35,080, respectively, recording the highest level at 35,080
On the technical side, the Dow Jones index witnessed a noticeable decline after touching the pivotal resistance at 35,080 and is currently stable around the 34,675 level. By closely looking at the chart, we notice that the Relative Strength Index continues to defend the downward trend, in addition to trading stability below the 34850 resistance level around the 50-day simple moving average.
From here, with daily trading remaining below the resistance level of 34,850, the bearish bias is the most likely, targeting 34,520 as the first target, knowing that breaking the aforementioned level extends the index’s losses, directly opening the door to visit 34,440.
As a reminder, the price’s consolidation again above 34,850 postpones the chances of a decline but does not eliminate them, and we may witness a retest of 34,960 and 35,000 initially.
Warning: Today we are awaiting high-impact economic data issued by the British economy: the Monetary Policy Committee’s vote on interest rates, the interest rate decision, and the monetary policy summary. We are waiting for the “Unemployment Benefits” indicator from the United States of America, and we may witness high price fluctuations at the time of the news release.
Note: Risk level may be 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.
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