Dow Jones trying to recover 19/1/2024

The Dow Jones Industrial Average witnessed mixed trading in the previous session, operating within the anticipated bearish context and touching the first target early in the American trading period at a price of 37330, reaching its lowest level of 37309.

Technically, the index experienced an upward rebound during the American period, prompted by the support around 37310. A closer examination of the 4-hour chart leads us to a cautious positive outlook, contingent on intraday stability above the support level of 37520. This level is calculated with the index receiving a positive boost from the 50-day simple moving average.

Hence, the preference is for an upward bias, with an initial target set at 37790. A breach of this level has the potential to bolster the index’s gains, paving the way for a visit to 37950.

Conversely, a return to trading stability below 37750 would reintroduce negative pressure on the index, with an initial target of 37380.

Risk Warning: The risk level is elevated, particularly amidst ongoing geopolitical tensions, and traders should be prepared for the possibility of heightened price volatility. Caution and prudent risk management are advisable.

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: 37380	R1: 37790
S2: 37145	R2: 37950
S3: 36980	R3: 38190