Dow Jones is Witnessing Heavy Losses 19/1/2022

The Dow Jones index incurred heavy losses during the previous trading session, within the expected bearish path, explaining that the breach of the support level 35,7000 increases the strength of the bearish trend, heading towards touching the official targets 35,400, recording the lowest 35,050.

On the technical side today, the RSI continues to defend the bearish trend in addition to the negative pressure coming from the simple moving averages.

With the stability of trading below the previously broken support and transformed into a resistance level according to the concept of exchanging roles at 35,400, the bearish trend is the most preferred, targeting 34,820 first target, and then 34,700 waiting stations whose bearish targets may extend later towards 34,585.

Trading above 35,400 postpones the chances of a decline but does not cancel them, and we may witness a retest of 35,520 before attempts to decline again.

Note: the level of risk is high, and we may witness high volatility in prices.

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

S1: 34820	R1: 35520
S2: 34585	R2: 35980
S3: 34120	R3: 36220