Dow Jones Technical Analysis: The Index Extends Its Gains| MENAFN.COM

Sunday, 29 January 2023 08:49 GMT

Dow Jones Technical Analysis: The Index Extends Its Gains

(MENAFN- Daily Forex)
  • The dow jones industrial average rose during its recent trading at the intraday levels, to achieve gains for the third consecutive day, by 0.45%.
  • It gained about 152.97 points, to settle at the end of trading at the level of 34,347.04, ending its session at its highest level since late April.
  • This happened after the index stopped on Thursday for the Thanksgiving holiday, and after recording gains in Wednesday's trading by 0.28%.
  • During the week, the index rose by 1.8%.

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As of Friday, the DJIA benchmark is up more than 19.5% from its 52-week low of 28,725.51, reached on Sept 30. Typically when a particular index or asset rises 20% or more from its recent bear market low, it is said to have technically exited bear market territory.

The index posted gains for the second in three weeks, as the minutes of the November federal policy meeting released on Wednesday helped support stocks, even as the tightening of restrictions imposed to combat the outbreak of the COVID-19 virus on movement and business in China undermined the outlook for the global economy.

As a result, investors were holding out hope on Friday that the Federal Reserve would switch to a less aggressive pace of rate hikes amid growing concerns about an economic slowdown in 2023.

There was no significant economic data released on Friday, but investors will face a busy week amidst a slew of data.Dow Jones Technical Analysis

Technically, the index continues to benefit from the continuous positive pressure due to its trading above the simple moving average for the previous 50 days, with the influx of positive signals on the relative strength indicators. This was despite reaching highly overbought areas, and the index is affected by its earlier breach of a bearish corrective slope in the short term, as shown in the attached chart for a (daily) period, to attack with its recent trading the important 34,281.36 resistance level.

Therefore, our expectations indicate the continuation of the index's rise during its upcoming trading, especially in the event of confirming its breach of the 34,281.36 resistance, to target the resistance level of 35,372.26.


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