Dow Jones is facing negative pressure 2/6/2022

Mixed trading continues to dominate the Dow Jones Industrial Average movements on Wall Street, recording the highest during the previous session’s trading at around 33,250, forcing the index to trade negatively towards its lowest price at around 32,560.

On the technical side today, and by looking at the 60-minute chart, we notice a decline in the bullish momentum and the index’s pivot below the resistance level of 33,040.

The bearish bias can continue, but we must witness a clear and strong breach of the 32,760 level, which constitutes a negative pressure factor to target 32,490 and 32,440, respectively, taking into consideration that the decline below 32,440 increases and accelerates the strength of the daily bearish slope, opening the door towards 32,190.

Activating the suggested scenario requires trading stability below 33,040; it may postpone the bearish bias, and the index is trying to restore the bullish path with an initial target of 33,185.

NOTE: The risk level 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: 32490	R1: 33185
S2: 32180	R2: 33560
S3: 31800	R3: 33875