Dow Jones incurs heavy losses 19/5/2022

The Dow Jones Industrial Average reversed the bullish trend to incur strong losses on Wall Street yesterday, recording its lowest level at 31,265, after hitting the highest at 32,590 in its worst daily performance since 2020.

On the technical side today, and with careful consideration on the short intervals, we find that the index is stable below the 31,600 level and most importantly below 31,800, accompanied by the negative pressure of the simple moving averages that coincides with the RSI defending the bearish trend.

We may witness a continuation of the descending wave and the bearish targets may extend to visit 31,100 first target and then 30,980 next stations as long as the price is stable below 31,800.

Note: the level of risk 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.

S1: 30980	R1: 32305
S2: 30460	R2: 33110
S3: 29660	R3: 33630