Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Negative trading dominated the performance of the Dow Jones Industrial Average on the New York Stock Exchange yesterday, as we expected, touching the first target published during the previous report at the price of 32,810, and approaching a few points away from the second target of 32,700, to suffice with recording its lowest level at 32,730.
On the technical side today, with the continuation of the negative intersection of the simple moving averages, which continues to pressure the price from above, in addition to the negative signals coming from the stochastic indicator on the 4-hour time frame, coinciding with the stability of the relative strength index below the middle line 50.
From here, with steady daily trading below the resistance level of 33,030, that encourages us to maintain our negative expectations, targeting 32,800 and 32,760, respectively.
Crossing upwards and consolidating above 33,035 completely invalidates the suggested scenario and leads the index towards retesting 33,160 & 33,250.
Note: The level of risk is high and may not be commensurate with the expected return.
Note: Today, we are awaiting high-impact economic data issued by the US economy, “the change in private sector jobs,” and the “manufacturing purchasing managers” index, in addition to the report issued by the International Energy Agency regarding oil inventories and we may witness high volatility in prices at the time of the news release.
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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