Dow Jones Technical Analysis: The Index Is Back On The Rise
Date
2/16/2023 11:53:37 PM
(MENAFN- Daily Forex) The Dow Jones Industrial Average rose again in its recent trading on intraday levels, to achieve gains in its last sessions by 0.11%. It gained about 38.78 points, to settle at the end of trading at the level of 34,128.06. This happened after declining during Tuesday's trading by -0.46%.
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The Commerce Department report showed that retail sales rebounded 3% in January. This was the largest one-month increase since March of 2021, in the latest sign of consumer resilience and a complication of the federal reserve's task to cool the economy.
Meanwhile, the NAHB/Wells Fargo housing market index rose for the second month to the highest level since September and beat market expectations of 37. Mortgage rate easing over the past several months boosted the housing market.
In other data on Wednesday, the New York Federal Reserve's Empire State Business Conditions Index, a measure of manufacturing activity in the state, rose 27.1 points in February to -5.8, the regional Fed said Wednesday. However, this is still the third consecutive month of declining activity.
US industrial output was flat in January, after declining by 1% in the previous month.Dow Jones Technical Analysis
Technically, the index moves along a bullish corrective trend line in the short term, as shown in the attached chart for a period of time (daily). It was supported by its continuous trading above its simple moving average for the previous 50-day period, accompanied by positive signals from the relative strength indicators, despite reaching highly saturated areas. With buying operations, the index attacked the pivotal and stubborn resistance level at 34,281.36 in its recent trading, that resistance that we had referred to in our previous reports.
Therefore, our expectations indicate more rise for the index during its upcoming trading, but with an important condition, which is its first penetration of the resistance level at 34,281.36. It would ensure that the index exited the stage of collecting positive momentum and narrow side trades, to target immediately after the first resistance levels at the level of 35,361.36.
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