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Dow Jones Technical Analysis: The Index Begins to Recover

By Akram Adel
Akram has experience working in the Forex industry since 2008. He works as a trainer and lecturer for technical analysis, trading strategies, and foundations of risk and capital management. In addition, he has experience with topics in the financial markets on many well-known sites that specialize in this field. Akram currently writes for a number of sites by providing accurate and professional articles and daily reports.

Individual investor optimism about the short-term direction of the US stock market has jumped to a new high in 2022, in the latest survey by the American Association of Individual Investors (AAII).

  • The Dow Jones Industrial Average rose during its recent trading at the intraday levels, to achieve gains in its last sessions by 0.59%.
  • It added to it about 199.37 points to settle at the end of trading at the level of 33,745.70.
  • This happened after its decline during Thursday's trading by -0.02%.Last week, the index decreased slightly by -0.01%.

Individual investor optimism about the short-term direction of the US stock market has jumped to a new high in 2022, in the latest survey by the American Association of Individual Investors (AAII).

In terms of economic data, the National Association of Realtors said on Friday that existing home sales fell 5.9% in October, declining for the ninth month in a row. This represents a 28.4% decline from a year earlier.

Meanwhile, the leading US economic index fell 0.8% in October, the eighth consecutive monthly decline, according to a Conference Board report on Friday. That's larger than the 0.4% drop expected by economists polled by the Wall Street Journal.

Dow Jones Technical Analysis

Technically, the index is affected by its recent trading from its earlier breach of a bearish corrective slope in the short term, as shown in the attached chart for a period of time (daily). It is being supported by its continuous trading above its simple moving average for the previous 50 days, and in addition to this, we note the start of the influx of positive signals. Once again, with the relative strength indicators, after the index's previous attempts to drain its overbought, which was evident in it.

Therefore, our expectations indicate a rise in the index during its upcoming trading, throughout the stability of the  32,504.00 support level, to target the pivotal and close 34,281.30  resistance level in preparation for attacking it.

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Akram Adel
About Akram Adel
Akram has experience working in the Forex industry since 2008. He works as a trainer and lecturer for technical analysis, trading strategies, and foundations of risk and capital management. In addition, he has experience with topics in the financial markets on many well-known sites that specialize in this field. Akram currently writes for a number of sites by providing accurate and professional articles and daily reports.
 

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