Dow Jones touches down on the extended target 4/10/2023

The Dow Jones Industrial Average suffered heavy losses during the previous trading session within the bearish context, as we expected in the last analysis, touching the official target of 33,150, recording its lowest level of 33,070.

On the technical side, the instantaneous movements of the index witness stability below 33,510, and with a closer look at the 4-hour time frame chart, we find the simple moving averages continuing to pressure the price from above, and this comes in conjunction with the Relative Strength Index continuing to defend the downward trend.

Therefore, the possibility of continuing the decline is still valid and effective, targeting 32,870 as the first target, knowing that breaking it will increase and accelerate the strength of the downward trend, so we will be waiting for 32,650.

The price’s consolidation again above 33,510 with the closing of the hourly candle can thwart the bearish scenario and the upward trend returns to controlling the index’s movements with a target of 33,930.

Note: Today we are awaiting high-impact economic data issued by the US economy: the change in private sector jobs, the services purchasing managers’ index issued by the ISM, the meeting of the OPEC Joint Ministerial Follow-up Committee, and the speech of Christina Lagarde, President of the European Central Bank, and we may witness high volatility at the time of the news release.

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: 32870	R1: 33510
S2: 32650	R2: 33930
S3: 32230	R3: 34150