Dow Jones Technical Analysis: Rises in Volatile Session

The Dow Jones Industrial Average rose slightly during its recent trading at the intraday levels, to achieve gains in a session characterized by volatility by 0.23%, It gained about 69.86 points, to settle at the end of trading at the level of 31,037.69, after declining during Tuesday’s trading by -0.42 %.

Advertisement

Current volatility is making great stock trading opportunities – don’t miss out!

Energy, financial and consumer discretionary stocks were the only losers, while the utilities sector led the way.

US stocks rose on Wednesday after the minutes of the Federal Reserve’s June monetary policy meeting showed the central bank’s eagerness to tame overheating inflation.

Members of the Federal Reserve’s Monetary Policy Committee decided at its meeting last month that another 50 or 75 basis points hike in the policy rate was “likely appropriate” in July, as it struggles to rein in inflation.

At its June meeting, the Federal Open Market Committee raised the federal funds rate by 75 basis points, its largest increase in nearly 30 years, in response to levels of inflation not seen in nearly four decades. The central bank has raised interest rates in each of the past three meetings, with further hikes likely in the upcoming meetings.

According to the document, participants have realized that policy constancy can slow down the pace of economic growth for some time, but see that a return of inflation to 2% is critical to maximizing job opportunities on a sustainable basis, and the next meeting of the Federal Open Market Committee is scheduled for 26 and 26 Next July 27.

Technically, the index’s rise came with the support of the influx of positive signals in the relative strength indicators. The index hovered for the fourth consecutive session around the main support level 31,000, in light of the dominance of the short-term bearish corrective trend along a slope line, with the negative pressure continuing for its trading below the simple moving average for a period of 50 In the previous days, we also notice in the midst of this that the RSI indicators reached overbought areas, as shown in the attached chart for a (daily) period.

Therefore, our expectations suggest a return to the index’s decline during its upcoming trading, especially as long as the resistance level 31,000 remains stable, to target the support level 29,653.30.