Dow Jones trying to compensate for losses, eyes on the US data 26/1/2023

The Dow Jones Industrial Average suffered heavy losses on Wall Street to reverse the bullish trend expected during the previous analysis, recording its lowest level in the last trading session at 33,265.

On the technical side, we notice the index’s bullish rebound after returning to stabilize above the 50-day simple moving average, which meets near 33,650. The relative strength index is trying to gain additional momentum over the short-term intervals.

We tend to upward, but with caution, with intraday trading remaining above the support level of 33,700, and most importantly 33,650, targeting 33,920 as a first target, taking into consideration that the breach of 33,920 is a catalyst that leads the index price to achieve additional gains to visit 33,970.

From below, confirmation of the breach of 33,650 nullifies the activation of the suggested scenario and puts the index under negative pressure, with targets starting at 33,450.

Note: Today, we are awaiting high-impact economic data issued by the US economy, The estimated reading of the quarterly GDP, and we may witness a high fluctuation.

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: 33410	R1: 33920
S2: 33085	R2: 34100
S3: 32910	R3: 34430