Dow Jones Technical Analysis: The Index Is Attacking A Stubb

(MENAFN– Daily Forex) The dow jones Industrial Average rose in its recent trading on the intraday levels, to achieve strong gains in its last session, by 0.78%. The index gained about 265.67 points, to settle at the end of trading at the level of 34,156.70, breaking the index’s series of losses that lasted for three consecutive sessions, and after recording slight losses in the previous session

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On Tuesday, investors digested comments from federal reserve Chairman Jerome Powell at the Economic Club of Washington. The US central bank chief reiterated that deflation has begun, particularly in the commodities sector, while saying the Fed has the tools to bring inflation down to its 2% target.

Meanwhile, when asked about the strong January jobs report, Powell’s comments did not indicate that it would change the central bank’s approach to future interest rate hikes. However, he warned that if the strong employment data continues, the final level of the interest rate could be higher.

US data on international trade showed that the US trade deficit reached a record level of $948. It is the third year in a row that the trade gap has widened due to sharp oil prices and consumers’ strong appetite for new cars, mobile phones, and other products. The 2022 deficit represents a 12% increase over the 2021 trade deficit.Dow Jones Technical Analysis

Technically, the index gained some positive momentum from its support of its simple moving average for the previous 50-day period. It was supported by positive signals from the relative strength indicators, and under the control of an upward corrective wave in the short term along a slope line, as shown in the attached chart for a (daily) time. The index, with its recent rise, attacked the pivotal and stubborn 34,281.36 resistance level .

Therefore, our expectations indicate more rise for the index during its upcoming trading, especially if it breaches the aforementioned resistance at 34,281.36. It confirms to us its determination to continue the rise, to target immediately after that the first resistance levels at 35,361.36.

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