The Dow Jones Industrial Average closed with slight gains during its recent trading at the intraday levels, to achieve small gains in its last sessions, by 0.03%, to add to it about 8.77 points only. It settled at the end of trading at the level of 31,261.91. It ended away at the lowest levels of the session at the level of 31,261.91 30,635.76, after declining in trading on Thursday by -0.75%. Last week, the index declined for the eighth consecutive week by -2.95%, recording the longest series of weekly losses since April 1932 during the Great Depression.
Sixteen of the index's 30 components rose, that green list offering Cisco Systems Inc. which recorded the highest percentage of gains in the companies listed on the index by 2.92%, followed by Salesforce Inc. by 2.60%, followed by McDonald's Corp. by 2.14%.
The People's Bank of China's decision on Friday to cut the interest rate on five-year loans aimed at shoring up weak housing sales by cutting mortgage costs. It provides some support to stocks battered by selling throughout the week, after Wall Street blamed shutdowns in industrial centers such as Shanghai that are linked to the fight against the virus. The outbreak of the new Corona virus due to weak US factory and consumer activity data in April.
Technically, the index moves within the range of a descending corrective price channel that limits its previous trading in the short term. This is shown in the attached chart for a period of time (daily), at a time when it suffers from the continuation of negative pressure for its trading below the simple moving average for the previous 50 days. It is in addition to the influx of negative signals with the relative strength indicators, despite its stability in oversold areas. We notice the index's attempts in the previous week to drain some of this saturation despite the continuation of the sharp selling operations on the index, which confirms the control of the selling forces.
Therefore, our negative expectations surrounding the index are in progress. We expect the index to decline again during its upcoming trading, throughout its stability below the 32,000 resistance level, to target the first support levels at 30,547.50.
