Dow Jones Witness Heavy Losses 25/1/2022

The Dow Jones Industrial Average declined significantly yesterday, causing the index to suffer heavy losses, reaching its lowest level at 33,030.

On the technical side today, the daily trend is still bearish after the index confirmed the breach of the 34,700 support-into-resistance. However, by moving to the short time frames, we find the positivity signs that started to appear on the stochastic, accompanied by the attempts of the 14-day momentum indicator to obtain positive signals.

We may witness a temporary bullish bias in the coming hours to retest 34,580 and 34,700. Note: the expected bullish bias does not contradict the daily bearish trend, whose official targets are around 32,430, once 33,200 is broken.

Note: the level of risk is high.

Note: CFD trading involves high risk; all scenarios may occur.

S1: 33205	R1: 34580
S2: 32430	R2: 35180
S3: 31850	R3: 35950