Dow Jones Daily Analysis: The index is receiving some support

Daily technical analysis of the Dow Jones Industrial Average – The DOW JONES INDUSTRIAL index rose during its recent trading on intraday levels, to achieve gains in its last sessions by 1.05%, to add about 345.09 points to the index, to settle at the end of trading at the level of 33,220.81. After declining during Wednesday’s trading by -1.10%, the index has fallen by 8.6% year-to-date.

advertisement

Trading is risky.

With the end of the year fast approaching, US stocks received a flurry of buying interest on Thursday. The rally was partly a result of the release of initial jobless claims data, which showed a more than expected rise in the last week. Most experts say it is necessary to control inflation and for the Federal Reserve to ease its policy of raising interest rates.

Initial jobless claims rose from last week to 225,000 in the week ending December 24, and continuing claims topped about 1.7 million in the week ending December 17, the most since early February.

Technically, the index found some support based on its simple moving average for the previous 50-day period, which gave it some positive momentum that helped it achieve those gains, in light of its impact on the breach of a bearish corrective slope line earlier in the short term, as shown in the attached chart. for a period of time (daily).

Dow Jones daily chart
Graph generated by platform TradingView

However, in front of that, we notice the start of a negative intersection with the relative strength indicators, after the last indicator failed to recover, which may hinder the index’s upcoming gains in the event that the purchasing forces interfered in the way.

Therefore, our expectations suggest that the index will rise during its upcoming trading, provided that the support level 32,582.00 remains stable, to target the resistance level 34,281.36 in preparation to attack it.

Leave a Comment