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Dow Jones Technical Analysis: Rises for Third Session – 18 May 2022


Our expectations indicate the likely scenario of a return of the stock’s decline during its upcoming trading.

The Dow Jones Industrial Average continued to rise during its recent trading at the intraday levels, to achieve gains for the third consecutive day, by 1.34%, to gain 431.17 points, to settle at the end of trading at the level of 32,654.60, after rising by 0.08% in Monday’s trading.

24 of the index’s 30 components, led by percentage, were up Boeing Co. by 6.45%, followed by American Express Co. by 3.46%, then shares of JPMorgan Chase & Co. by 3.31%.

On Tuesday, the Census Bureau reported that retail sales for April rose 8.2% year-on-year, up from March’s 7.3% increase. The result shows that the consumer still has power.

In addition, industrial production rose 1.1% in April, the Federal Reserve reported on Tuesday, beating expectations for a 0.5% gain.

“There could be some pain” for Americans as the Fed moves aggressively to bring down inflation, Federal Reserve Chair Jerome Powell said Tuesday afternoon at the Wall Street Journal’s Future of Everything event. But, he said, “there are a number of reasonable paths to getting a soft landing.”

Technically, the index’s rise comes in support of the influx of positive signals in the relative strength indicators after it reached areas of oversold activity. It is trading within the range of its price channel, as shown in the attached chart for a (daily) period, with the negative pressure continuing. The simple moving average for the previous 50 days attributes the index’s rise as an attempt to compensate for some of its previous losses.

Therefore, our expectations indicate the likely scenario of a return of the stock’s decline during its upcoming trading, as long as the resistance level 33,271.90 remains intact, to target the support level 32,000 in preparation to break it.

Gold Technical Analysis: Gold Price Looking for Catalysts – 18 May 2022

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