Dow Jones Technical Analysis: Index Continues to Bleed Losses

Federal Reserve Chairman Jerome Powell spoke at the cryptocurrency conference, but he didn't say anything notable about monetary policy.

  • The Dow Jones Industrial Average declined in its recent trading at the intraday levels, to record losses for the sixth consecutive day.
  • It went down by -0.43%, to lose about 125.82 points, and settling at the end of trading at the level of 29,135.00.
  • It previously declined by -1.11% on monday. The index entered the bear market stage as it is known on Monday, after falling by 20.5% from its record close on January 4th, recording its lowest close since November 12, 2020.

Investors heard several Fed speakers on Tuesday, including Chicago Fed President Charles Evans who said interest rates may need to stabilize next year. Minneapolis Fed President Neil Kashkari also said Fed officials are in rare agreement on the goal of bringing inflation down to a 2% target and added that a "soft landing" for the US economy was still possible.

Federal Reserve Chairman Jerome Powell spoke at the cryptocurrency conference, but he didn't say anything notable about monetary policy.

On the economic data front, new home sales came in at 685,000 homes last month, easily exceeding expectations. The Conference Board's Consumer Confidence Index came in at 108, the best since last April.

Durable goods orders fell 0.2% in August, less than expected. Orders excluding transportation rose 0.2%, while orders for essential durable goods rose 1.3%. The Case-Shiller Home Price Index for 20 cities showed house prices fell in July for the first time in just over 10 years.

Dow Jones Technical Analysis

Technically, the index confirmed its recent decline to break the 29,653.30 pivotal support level, this level that we had referred to in our previous reports. We also considered the dominance of the short-term bearish trend along a slope line, with the negative pressure continuing to trade below the simple moving average for the previous 50 days, as it is. All this is shown in the attached chart for a (daily) period, but in front of that, we notice the beginning of a positive crossover on the RSI indicators, after reaching oversold areas, which may curb the index's upcoming losses.

Therefore, we expect the index to continue declining during its upcoming trading, especially throughout its stability below the level of 29,653.30, to target the support level of 28,402.50.

Dow Jones Industrial Average

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Akram Adel
Akram has experience working in the Forex industry since 2008. He works as a trainer and lecturer for technical analysis, trading strategies, and foundations of risk and capital management. In addition, he has experience with topics in the financial markets on many well-known sites that specialize in this field. Akram currently writes for a number of sites by providing accurate and professional articles and daily reports.

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