Dow Jones Technical Analysis: Index Is Trying To Recoup Some Of Its Losses – 20 September 2022
Markets are still focused on this week’s two-day meeting of the Federal Reserve’s Monetary Policy Committee, which ends on Wednesday.
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Leading by percentage is Nike Inc.’s stock of 21 of the index’s 30 components. Cl B increased by 2.97%, followed by Apple Inc. by 2.51%, then Home Depot Inc. Cisco Systems Inc.’s stock closed without change, increasing by 1.61%.
Stock traders have clearly understood the Fed’s policy. It is now well understood that the Fed will raise interest rates aggressively, but the question now is when that will pace of rate hikes slow down. The fear now is that a slowdown is not coming soon, so the markets will listen to Future comments from Federal Reserve Chairman Jerome Powell.
Markets are still focused on this week’s two-day meeting of the Federal Reserve’s Monetary Policy Committee, which ends on Wednesday. A three-quarter point rate hike is expected, and focus will also be placed on the new economic outlook, due to be published along with the Fed’s policy statement.
Technically, the index is trying with this recent rise to compensate for part of what it incurred from previous losses. This happened considering the dominance of the corrective bearish trend in the short term, as shown in the attached chart for a (daily) period. In addition to Negative pressure continuing for its trading below the simple moving average for the previous 50 days, we notice the frequency of negative signals on the RSI indicators.
Therefore, our expectations suggest a return to the index’s decline during its upcoming trading. Especially throughout its stability below the main 31,000 resistance level, to target the 29,653.30 pivotal support level.
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