Dow Jones extends losses ahead of Fed 21/9/2022

The Dow Jones Industrial Average declined noticeably yesterday after it failed to maintain its trading above 30,800 during the previous session, to record as low as 30,555.

Technically, the stability of daily trading below the 31,000 barrier increases the imposition of negative pressure. Therefore, we find that the 14-day momentum indicator sends negative signals on the short time frames.

We tend to be negative, but with caution, knowing that breaking 30,800 facilitates the task required to visit 30,500 first target, taking into consideration that infiltration below 30,500 increases and accelerates the strength of the bearish trend and forces the index to complete the descending wave towards 30,180 unless we witness trading and consolidation of the price above 31,000.

Consolidation above 31,000 delays the chances of a decline but does not cancel them, and we may witness a bullish bias that aims to retest 31,200 initially.

Note: We await the Fed statement and outlook, followed by a press conference. They have a significant impact, and we may witness high volatility in prices, which requires attention to the upcoming moves so that all scenarios are likely to occur.

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: 30500	R1: 31200
S2: 30180	R2: 31575
S3: 29800	R3: 31895