Technical analysis of the Dow Jones: hint of a breathtaking truce

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The Dow Jones Industrial Average dipped slightly in its recent intraday trading, breaking a streak of gains that has continued for three consecutive sessions. It recorded slight losses during its last sessions, of -0.14%, to lose the index to -46,739 points. It then stabilized at the end of the session at the level of 32,798.40, therefore after rising during the session last Friday by 0.97%, after recording its best monthly performance in July since 2010.

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Minneapolis Federal Reserve Chairman Neil Kashkari said in an interview with CBS News on Sunday that the central bank remains committed to its 2% inflation target. However, we are “far” from this objective. Neel Kashkari is not a voting member of the Federal Open Market Committee this year.

Stocks oscillated between losses and gains on Monday after the Institute for Supply Management reported that its closely watched manufacturing gauge fell to 52.8% in July from 53% the previous month. Economists polled by The Wall Street Journal had expected the index to hit 52.1%. While any figure above 50% indicates growth, the latest reading was the lowest since June 2020.

Spending on construction projects fell 1.1% in June, the Commerce Department reported Monday. Economists polled by the Wall Street Journal had expected a 0.4% rise.

Dow Jones Technical Forecast

Technically, the index with its recent decline is trying to reap the benefits of its recent short-term increases. He’s also trying to gain some positive momentum that could help him back up. The index is trying to drain some of its clear overbought by relative strength indicators, especially with the beginning of a negative crossover emerging in them. The positive support for its trading is above its previous 50-day simple moving average, but ahead of that the dominant trend remains the short-term corrective downtrend along a slope line, as shown in the attached chart for a (daily) period.

Therefore, our expectations suggest a return to the cautious rise of the index at its next quotationto target the pivot level and close to the 33,240 resistance, and this positive scenario remains below expectations as long as the 31,885 support level remains intact.

Dow Jones Industrial Average Index

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