Dow Jones suffers big losses ahead of Fed 22/2/2023

As we expected, the Dow Jones Industrial Average incurred heavy losses yesterday, bypassing the official target station to be touched at 33,490, recording its lowest level at 33,110.

Technically, when looking closely at the 4-hour chart, we find a negative intersection of the simple moving averages supporting the bearish daily price curve, which comes in conjunction with the clear negative signs on the 14-day momentum indicator on short-term frames.

Therefore, with the stability of trading below the previously broken support, which is now converted to a resistance level at 33,470, the bearish scenario remains the most likely during the day, knowing that trading below 33,110 increases the strength of the bearish daily trend so that we are waiting to touch 32,950 as a first target. The losses may extend later to visit 32,720 As long as daily trading is stable below 33,470.

Note: the risk level may be high today.

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: 32950	R1: 33580
S2: 32720	R2: 33980
S3: 32320	R3: 34215