Dow Jones Nears Extended Targets 15/11/2023

Yesterday, the Dow Jones Industrial Average made a significant leap on Wall Street in response to a decline in US inflation numbers, recording substantial gains at 34,985.

Today’s technical analysis, focusing on the 4-hour chart, reveals that the simple moving averages support the daily upward curve. This is coupled with the Relative Strength Index defending the upward trend.

Given these factors, an upward trend appears most likely as long as trading remains above 34,775. The first target is set at 35,170, a breach of which would amplify the index’s gains, paving the way towards 35,390.

Conversely, should the figure drop below 34,775, this would delay the rise and place the index under negative pressure, to retest 34,540.

Caution: Today, we anticipate high-impact economic data releases from the US economy, including the Producer Price Index, Retail Sales, and New York State Manufacturing Index. From the UK economy, the Annual Consumer Prices will be released. These data releases may result in significant price fluctuations.

Note: The risk level is high due to ongoing geopolitical tensions, which may cause significant 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: 34540	R1: 35170
S2: 34135	R2: 35390
S3: 33910	R3: 35975