Technically, the index succeeded in its recent trading in overcoming the resistance of its simple moving average for the previous 50-day period, to get rid of its negative pressure.
- The Dow Jones Industrial Average continued to rise in its recent trading on the intraday levels, achieving gains for the fourth session in a row, by 0.03%.
- The index added about 9.88 points, only to settle at the end of trading at the level of 33,743.85, after achieving gains during Tuesday’s trading by an amount of 0.31%.
- From the beginning of the year until that moment, the index increased by 1.80%.
Despite the recent rise in the index, this was not the case for the rest of the major indices, which suffered slight losses for the second day in a row. Investors were concerned about the chance of a recession as high borrowing costs prevented more companies from growing while slowing sales forced some layoffs.
The United States may be heading into a recession this year, but it will be difficult to tell. Based on the strong performance of the economy at the end of 2022, GDP is likely to grow faster than normal for the second quarter in a row.
The US is expected to expand at a 2.8% annualized pace in the period covering October through December. GDP is the official performance definition for the economy in general, as investors eagerly await the release of Q4 GDP on Thursday morning.
The GDP also increased at a 3.2% rate in the third quarter, rebounding from two consecutive declines in the first half of the year.
Dow Jones Technical Analysis
Technically, the index succeeded in its recent trading in overcoming the resistance of its simple moving average for the previous 50-day period, to get rid of its negative pressure. This happened considering the index’s trading along a corrective and bullish sub-slope line in the short term, as shown in the attached chart for a (daily) period. We note Positive signals are present in the relative strength indicators, after reaching oversold areas.
Therefore, our expectations indicate more rise for the index during its upcoming trading, to target the pivotal 34,281.36 resistance level in preparation to attack it. This positive scenario will remain valid if the 32,582.00-support level remains intact.
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