Dow Jones is under negative pressure 22/6/2023

Noticeable negative trading dominated the movements of the Dow Jones Industrial Average on the New York Stock Exchange during the previous session, resulting from the collision with the strong resistance level located at 34,890, forcing the index to decline rapidly, stable around 34,220.

Technically, by looking at the 4-hour chart, and with the continued stability of the price below the 50-day simple moving average, which presses the price from above, in addition to the negative signals from the relative strength index, which settled below the mid-line 50.

This encourages us to hold onto our negative expectations, targeting 34,120, knowing that breaking it will enhance the chances of resuming the bearish slope, opening the door towards the expected station 34,030.

Only from above, bypassing upwards and rising above the strong resistance 34,350, will immediately stop the suggested bearish scenario and lead the index to recover temporarily with the target of 34,480.

Note: Today we are awaiting high-impact economic data issued by the British economy, “the interest rate decision and monetary policy summary,” and from the United States, we await the testimony of the Federal Reserve Chairman “about the semi-annual monetary policy report before the House Financial Services Committee. We may witness a high price fluctuation during 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.

S1: 34125	R1: 34350
S2: 34030	R2: 34480
S3: 33895	R3: 34575