Dow Jones touching the downside targets 25/5/2023

As expected, the Dow Jones Industrial Average incurred significant losses on the New York Stock Exchange, surpassing the official target station at 32,900, recording its lowest level at 32,634.

On the technical side today, we tend to be negative in our trading, relying on the negative intersection of the simple moving averages that continue the negative pressure on the price from above, and this comes in conjunction with stochastic centring around the oversold areas, in addition to the negative signals of the RSI on the short time frames.

From here, with steady daily trading below the resistance level of 32,900, the bearish scenario remains valid and effective, targeting 32,520 as an expected target, and the losses may extend later to visit 32,340.

The index’s consolidation above the resistance level of 32,900 may postpone the suggested scenario as we witness an attempt to build a rising wave, with targets starting at 33,000 & 33,150.

Note: The level of risk is high and may not be commensurate with the expected return, and all scenarios are open to occurrence.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “the preliminary reading of the Gross Domestic Product,” quarterly, and we may witness a high fluctuation in prices.

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: 32520	R1: 33005
S2: 32335	R2: 33310
S3: 32040	R3: 33490