Dow Jones is Looking For More Momentum 5/4/2022

The Dow Jones index reversed the expected bearish trend during the previous analysis. We relied on the stability of the index’s price below the 34,800 resistance level to record its highest level at 34,844.

On the technical side today, and by looking at the 4-hour chart, we notice the indicator’s attempts to gain additional momentum from the stochastic indicator. The RSI is trying to provide positive signals on the short time frames.

From here and steadily intraday trading above 34,610. Despite the technical factors that support the possibility of a rise, we prefer to confirm the breach of 34,860, which is a catalyst factor that might enhance the chances of visiting 34,950, and then 35,060 next station.

The decline below the 34,610 level, and most importantly 34,590 leads the index price to a negative session, with its automatic target of 34,400.

Note: The risk level is high.

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

S1: 34610	R1: 34950
S2: 34400	R2: 35060
S3: 34280	R3: 35270