Dow Jones Technical Outlook

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Updated: Mar 22, 2023, 07:34 GMT+00:00

The Federal Reserve on Wednesday, in a surprise decision, made no change to its massive $85 billion monthly bond purchase program. Market players were

The Federal Reserve on Wednesday, in a surprise decision, made no change to its massive $85 billion monthly bond purchase program. Market players were expecting the central bank to begin tapering its bond-purchase program by a modest amount of $10 – $15 billion.

Immediately after the announcement, the Dow Jones Industrial Average (DJI30) rose sharply to hit to all-time high.

On Thursday, DJI30 futures rose to 15721 ahead of some leading economic indicators from the US that could judge the health of the US housing and manufacturing sectors. Key economic releases scheduled for release today includes weekly jobless claims, existing home sales and Philly Fed Manufacturing Index. Also read: US Fed Takes The Center Stage – Weekly Outlook
As is visible, the Dow is currently trading at the top end of an ascending channel formation on daily chart, suggesting that the index is likely to face some resistance at current juncture, around 15700 area.
Moving on to long-term chart (weekly chart), the index, again, has been holding within an ascending channel formation. These formations indicate that should the index manage to strengthen above its immediate resistance near 15700 region, the index is likely to continue appreciating towards the top-end of the long-term ascending channel resistance near 16750 – 16800 levels in the medium-term. This 16750 – 16800 zone also represents 100% Fibonacci Expansion level, as could be seen in the chart.
On the downside, highs touched in the month of August, 15650 area, now seems to protect immediate downfall for the index. Should the index weaken below its immediate support, it is likely to give up some of its recent gains and move towards its next support level near 15400 – 15450 zone, which might now act as important pivot for any further downward movement for the index.

Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/

About the Author

Haresh Menghaniauthor

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