Dow Jones starts gapping upwards 27/12/2022

The Dow Jones Industrial Average opened its daily trading on a bullish price gap, recording its highest level during the first trading of this week at 33,395.

On the technical side, today, the index’s price is settling above the 50-day simple moving average, which returned to hold the price from below, in addition to the clear positive momentum signs on the momentum indicator on the 60-minute timeframe.

We tend towards intraday positivity, but with caution, provided that we witness the price consolidation above 33,400, which is a catalyst that leads the index to achieve more gains, to visit 33,460 as the first target, and then 33,550 as the next stop.

A decline below 33,260 leads the index to cover the price gap, with initial targets starting at 32,970, and extending the losses later to visit 32,870.

Note: The level of risk is high and not commensurate with the expected return.

Note: In light of the absence of economic indicators during the holiday season, the decline in liquidity ratios, and thin trading volumes, we may witness random, irregular movements.

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: 32970	R1: 33555
S2: 32605	R2: 33765
S3: 32390	R3: 34140