We expect more rise for the index during its upcoming trading, as long as its stability is above the level of 31,885.
The Dow Jones Industrial Average returned to rise during its recent trading at the intraday levels, to achieve slight gains in its last sessions, by 0.28%, to gain about 90.75 points. It settled at the end of trading at the level of 31,990.05, after its decline in Friday’s trading by -0.43%. During the past week, the index rose by 1.95%.
The index closed its session with modest gains at the start of a week full of tech giants’ quarterly earnings reports, which also includes the looming Federal Reserve interest rate decision on Wednesday, so investors were cautious in their trading in search of more clues.
The central bank is expected to raise borrowing costs by 75 basis points to a range of 2.25% to 2.50%, but investors will be keen to see how the Fed sees the pace of future hikes. The pace of the hikes remains uncertain going into the fall, and especially if labor market data begins to ease, we can expect the Fed’s interest to turn once again to tapering rate increases.
What’s next in Housing?
Looking ahead, sales of new single-family homes in the US are expected to slow to 661,000 at an annual rate in June, according to a Bloomberg survey, after a surprising increase to 696,000 in May.
Sales will remain well below the annual rate of 714,000 reported in June of 2021, indicative of the difficulties the housing market continues to be affected by lack of inventories and high mortgage rates. Home sales data is due to be released later in the day.
Will the Index Settle?
Technically, the index attempted to reap the profits of its recent rises in the short term and disposed of some of its clear overbought by the relative strength indicators. This is after the emergence of a negative crossover in them, to gather its positive forces that might push it to further rises. We find that it has returned to the upside, but timidly, as it remains, it is trying to gain this momentum.
Despite that, the index settled in its recent trading above the 31,885 level, supported by its trades above its simple moving average for the previous 50 days. This may push it to test the resistance level 33,240, as the index moves along a short-term corrective bearish trend line, as shown in the attached chart for the daily period.
Therefore, we expect more rise for the index during its upcoming trading, as long as its stability is above the level of 31,885.
Ready to trade the Dow Jones 30? We’ve shortlisted the best CFD brokers in the industry for you.
Turkish 
English 
Arabic