Dow Jones rises cautiously, eyes on employment data 8/12/2023

The Dow Jones Industrial Average exhibited a prominent upward trend on Wall Street in the previous trading session, attaining its peak at 36,210.

From a technical standpoint today, the 50-day simple moving average has resumed its role of providing support from below, coinciding with the RSI generating positive signals.

Our stance is cautiously optimistic, contingent on the index maintaining trading above the support level of 36,100. The initial target in this scenario is set at 36,260, with a successful breach acting as a motivating factor that could enhance the likelihood of an upward move towards 36,330.

However, a dip below 36,100 would subject the index to robust negative pressure, with the initial retest target at 36,065.

A couple of warnings are pertinent: Firstly, today’s anticipation of high-impact economic data from the American economy—specifically NFP data, average wages, and unemployment rates—may lead to substantial price fluctuations during the news release. Secondly, the overall risk level remains elevated amid ongoing geopolitical tensions, contributing to the potential for heightened price volatility. Exercise caution and remain vigilant in response to market dynamics.

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: 36065	R1: 36260
S2: 35950	R2: 36330
S3: 35875	R3: 36445