Dow Jones Technical Analysis: The Index is Retesting an Important Resistance

Traders' sentiment was boosted by remarks by US Treasury Secretary Jane Yellen on Tuesday that more US government intervention is possible if another. Smaller bank encounters difficulties like those experienced by other recently troubled lenders.

  • The Dow Jones Industrial Average advanced during its recent trading on the intraday levels, to achieve gains in its last sessions and for the second day in a row, by 0.98%.
  • The index added to it about 316.02 new points, and settled at the end of trading at the level of 32,560.61, after its rise during Monday’s trading.

The Fed kicked off its two-day meeting earlier on Tuesday. After a wild few sessions investors were divided on whether the central bank would raise interest rates by 25 basis points on Wednesday or pass up the opportunity to raise borrowing costs this month.

Meanwhile, shares of First Republic Bank FRC, a major concern of US investors, rose 29.5% on the news that JPMorgan CEO Jamie Dimon is leading talks with other major banks on new steps to stabilize, including through a potential investment.

Traders' sentiment was boosted by remarks by US Treasury Secretary Jane Yellen on Tuesday that more US government intervention is possible if another. Smaller bank encounters difficulties like those experienced by other recently troubled lenders.

In terms of economic data, sales of existing homes rose in February at their largest pace since July 2020. Last month, sales increased by 14.5% to 4.58 million, exceeding expectations of 4.2 million in sales. As a result, shares of the sector rose. housing after the release of the data.

Technical Outlook:

Technically, the index consolidated its gains recently amid positive signals from the relative strength indicators. It re-tested the important resistance level of 32,582.00 with its recent rise, considering its trading along a bearish corrective slope line in the short term. This is shown in the attached chart for a (daily) period, with the continuation of negative pressure for its trading below the simple moving average for the previous 50-day period.

Therefore, we still expect the index to return to decline during its upcoming trading, especially if the aforementioned resistance level at 32,582.00 remains stable. It will target once again the pivotal 31,727.00 support level.

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.