Dow Jones suffers huge losses 14/2/2024

The Dow Jones Industrial Average witnessed significant losses on the New York Stock Exchange in response to the latest US inflation data, reaching its lowest point near the crucial support level of 38,096.

Today’s technical analysis unveils a landscape where the simple moving averages exert downward pressure on prices, coinciding with indicators signaling a decline in momentum on shorter time frames.

In this context, as daily trading persists below the resistance barriers at 3,8400 and, notably, 38,450, the prevailing trend points towards further downward movement during today’s session, with an eye on the target zone around 37,970. Of utmost importance is vigilant monitoring of the 37970 level, as its breach could unleash extended losses, potentially touching down at 37,630.

However, a resurgence in stability above 38,450 would invalidate the bearish outlook, paving the way for recovery attempts, with initial targets set around 38,770.

Warnings:

1. Market participants should brace themselves for potential volatility as high-impact economic data, including the annual consumer price index and the Governor of the Bank of England’s speech, is anticipated today.
2. Elevated risk levels, compounded by ongoing geopolitical tensions, may contribute to heightened price volatility, necessitating prudent risk management strategies.

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: 37970	R1: 38770
S2: 37630	R2: 39235
S3: 37170	R3: 39570