Dow Jones Index Technical Analysis - Dow Jones Index Trading: 2022-09-21

Dow Jones Index Technical Analysis Summary

Below 30400

Sell Stop

Above 33700

Stop Loss

Indicator Signal
RSI Neutral
Fractals Sell
Parabolic SAR Sell
Bollinger Bands Neutral

Dow Jones Index Chart Analysis


Dow Jones Index Technical Analysis

On the daily timeframe, DJI: D1 is in a downtrend. It went down from the triangle pattern. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if DJI: D1 falls below the latest low: 30400. This level can be used as an entry point. The initial risk limit is possible above the last three upper fractals, the upper Bollinger band, the 200-day moving average line, the Parabolic signal and the upper border of the triangle: 33700. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal high. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (33700) without activating the order (30400), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Indices - Dow Jones Index

US stocks are falling on the back of an expected increase in the Fed rate. Will the correction of DJI quotes ontinue?

On September 21, the next meeting of the Fed. According to CME FedWatch, with a probability of 84% the rate will be increased by 0.75% and with a probability of 16% - by 1%. Now it is 2.5%. On Tuesday, U.S. The 2-year note almost hit 4% per annum for the first time since October 2007. The US 10-year Treasury yield rose yesterday to an 11-year high of +3.6% per annum. Thus, investors hope for a real tightening of the Fed’s monetary policy and do not rule out an increase in its rate to 4.5% by March 2023. The growth of bond rates has a negative impact on the quotes of most stocks. Note that the global rise in commodity prices can reduce the production of American industry. Automaker Ford Motor did not rule out an increase in costs and a decrease in sales against the backdrop of high inflation. Its shares fell 12% yesterday. Recall that the publication season of quarterly financial statements of US corporations will begin on 11 October.