Dow Jones maintains gains and eyes on the Powell 7/3/2023

The Dow Jones Industrial Average achieved strong gains during the first trading of this week within the expected bullish context last Friday, surpassing the required target at 33,200, recording its highest level at 33,577.

Technically, the relative strength indicator is trying to defend the bullish daily direction, accompanied by the stochastic centring around the overbought areas on the 4-hour timeframe, in addition to the positive motive of the 50-day simple moving average.

With the level of 33,200 turning into a support level, the bullish bias is the most preferred during today’s session, provided that we witness the consolidation of the price above 33,500, targeting 33,590 as a first target, knowing that breaching the mentioned level is a catalyst that enhances the chances of continuing the ascent towards 33,700 and 33,800, respectively.

The return of trading stability below the pivotal support floor 33,200 is able to thwart the bullish scenario completely and put the index under strong negative pressure, targeting 33,090.

Note: Today, the markets are awaiting the semi-annual testimony of Federal Reserve Chairman Jerome Powell before the Senate, and we may witness high 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: 33340	R1: 33590
S2: 33220	R2: 33705
S3: 33095	R3: 33835