Dow Jones is making strong gains 8/2/2023

We adhered to intraday neutrality during the previous technical report due to the presence of a conflict between the technical signals, explaining that activating buying positions depends on confirming the index’s breach of the 33,960 resistance level, as a catalyst that enhances the chances of touching 34,000 and 34,040, respectively, for the Dow Jones Industrial Average to jump, achieving gains towards 34,250.

Technically, we find the RSI defending the continuation of the rise, stable above the mid-line 50, accompanied by the index getting a positive impulse from the 50-day simple moving average, in addition to the stochastic centring around the overbought areas.

The bullish bias is most likely during the current trading session, knowing that the price’s consolidation once again above 34,180 enhances the chances of touching 34,250, and breaching it increases and accelerates the strength of the bullish daily trend to visit 34,395 initially.

From below, the return of trading stability below 33,770 nullifies the activation of the suggested scenario above, and we witness a retest of 33,700 & 33,520.

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: 33770	R1: 34395
S2: 33390	R2: 34630
S3: 33150	R3: 35010