Dow Jones: Positive scenario still stands 1/8/2022

The Dow Jones Industrial Average provided substantial gains at the end of last Friday’s trading to record its highest level at 32,880.

On the technical side today, the current moves of the index indicate more upside, relying on establishing the index as a solid support floor around 33,510. We also find that the RSI continues to defend the daily bullish trend in conjunction with the positive motive of the 50-day simple moving average.

Therefore, the bullish bias may remain intact. However, we await the breach of 32,685 to open the door for more gains towards 32,885 an initial station and may extend its targets to 33,090 as long as the price is stable above 33,510.

Attempts to break 32,500 may put the index’s price under negative pressure, targeting a retest of 32,465 before attempts to rise again. Note: Stochastic is around overbought intraday areas.

Note: the level of risk is high.

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: 32465	R1: 32885
S2: 32250	R2: 33095
S3: 32045	R3: 33310