Dow Jones jumps on Wall Street 1/12/2023

The Dow Jones Industrial Average experienced significant gains on Wall Street in the previous trading session, aligning with the anticipated upward trend and reaching the official target of 35,750. The index recorded its highest level at 36,057.

From a technical standpoint today, a positive outlook is favored, with support from the simple moving averages contributing to the daily upward trajectory of prices. Additionally, the Stochastic indicator concentration around overbought areas provides positive signals.

As such, the most likely scenario is an upward trend during the day, targeting 36,200 as the initial goal. Breaking this level would further strengthen and accelerate the upward trend, potentially opening the way to 36,370.

A return to trading stability below 35,720 from below may delay the chances of an upward movement, but it wouldn’t cancel them entirely. In this case, a retest of 35,400 could occur before renewed attempts to rise again.

Caution: High-impact economic data is expected today from the American economy, including the Manufacturing Purchasing Managers’ Index issued by the ISM and a press talk by the Chairman of the Federal Reserve. Consequently, there may be high price volatility at the time of news release.

Caution: The level of risk is high amid continuing geopolitical tensions, and there may be high price volatility.

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: 35720	R1: 36200
S2: 35400	R2: 36370
S3: 35230	R3: 36680