Dow Jones suffers huge losses 22/9/2023

The Dow Jones Index suffered significant losses on the Wall Street Stock Exchange within a negative outlook, as we expected, exceeding the downward targets required to be touched at 34,440, recording its lowest level at 34,300.

Technically, we are leaning towards negativity, relying on the Relative Strength Index continuing to defend the downward trend and the negative crossover coming from the simple moving averages.

From here, with daily trading remaining below the 34,500 resistance level, the bearish bias is the most likely, targeting 34,230 as the first target, knowing that breaking the aforementioned level extends the index’s losses, opening the door to visit 34,065.

The price’s consolidation again above 34,500 temporarily led to the bearish scenario’s failure and led the index to retest 34,630.

Note: Today we are awaiting high-impact economic data issued, the preliminary reading of the services and manufacturing PMI index in Europe, the UK and the US, and we may witness high fluctuation in prices at the time of the news release.

Note: Risk level may be 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: 34230	R1: 34630
S2: 34065	R2: 34865
S3: 33830	R3: 35030