The Dow Jones continues to climb higher as the US economic data shows a resilient economy with a good disinflationary trend despite an aggressive monetary tightening seen in the past year and a half. In fact, despite the Fed members keep talking about two more rate hikes coming this year, the market continues to rally as strong data raises the chances of a soft landing. It’s likely that only ugly economic data will start to weigh on the Dow Jones.
Dow Jones Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Dow Jones found support at the red 21 moving average as the US Consumer Confidence report surprised to the upside and the buyers started to lean on the moving average to position for another rally. The price has broken above the key 34477 resistance again and it will now probably look towards the 35289 high.
Dow Jones Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price couldn’t pull back all the way to the 34448 support where we had also the 61.8% Fibonacci retracement level. Instead, the Dow Jones started to bottom out on a previous swing high level and jumped higher after the consumer confidence release. The moving averages have crossed to the upside again as the trend turned bullish, and now the buyers will target the 35289 resistance.
Dow Jones Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that from a risk management perspective, a good support zone for the buyers would be the 34477 level where we can also find the 38.2% Fibonacci retracement level. The sellers, on the other hand, will want to see the price breaking below the support zone to pile in and target the 33448 level.
Upcoming Events
It’s a full week on the data front beginning with the US ISM Manufacturing PMI today, the US Jobless Claims and ISM Services PMI on Thursday and concluding the week with the main event: the US NFP.
