Dow Jones looking for extra momentum 9/12/2022

Trading tended to be positive, dominating the Dow Jones Industrial Average on Wall Street, recording its highest level near the pivotal resistance published during the previous analysis at the price of 33,870, recording the highest of 33,892, to reverse the expected trend yesterday.

Technically, when looking closely at the 4-hour chart, we notice that there are positive signs from the stochastic indicator, stimulated by the positive signals coming from the relative strength index.

Despite the technical factors that indicate the possibility of a cautious upward bias, we find that the simple moving average still constitutes an obstacle in front of the index, and we need to cross upwards and consolidate above 33,955 to facilitate the rise towards 34,170 and 34,370 as long as trading remains stable above 33,550.

Note: Today we are awaiting high-impact data issued by the US economy, “the monthly producer price index and the initial reading of consumer confidence,” and we may witness high volatility in prices.

Note: The risk level is high and careful consideration is required.

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: 33545	R1: 33995
S2: 33270	R2: 34170
S3: 33095	R3: 34445