Dow Jones technical analysis and examination- Good news on the debt ceiling agreement raises the Dow Jones.

Dow Jones Technical Rundown

The Dow price has risen from the 33000 level and approaching the long period moving average,  on the daily graph. The 32684 support is where the sellers are inclined to focus their efforts in search of further fall. The market’s continued doubt about the direction the economy and interest rates would go has resulted in chaotic price behavior generally.

Recent economic indicators have exceeded forecasts, prompting central bankers to suggest that, should the data continue to improve, The US Fed could hike interest rates once more at their meeting in June. This week, we also received positive developments on the debt ceiling, which helped the market and led to a rise.

Technical evaluation for the Dow Jones

We can see from the 4 hourly graph that nothing can be inferred from it because of the current price action’s uneven character. However, there are a few noteworthy areas wherein the price responded most strongly. The previous downtrend’s final downward high, resistance level 33850, maintains the negative bias on the upswing. Investors are probably aiming for this level right now. And if they succeed in breaking out, 34477 should be the next price to be seen.

On the downside, there is the 33000 support level, which held back the recent decline. The 33545 area is in the middle and is expected to serve as a gauge for sentiment.  Having a tendency turning bullish if the price rises over it and negative if it declines.

We can observe that the recent breakout of the 33545 level is diverging with the MACD on the one hour graph. This typically indicates the trend is waning and often followed by declines or reversals. The violated 33545 level, which also contains the 38.2% Fibonacci retracement level and the long period MA for convergence. Could indicate the location of a downturn in this instance.

Investors are likely to eyeing a risk free zone

The selling would want to see the market fall under that level in order to rush in and attack the 33000 support. But the buyers are inclined to have an eye on that area with a clear risk just below it. The speech by Fed Chair Powell is the main event to watch today. He is anticipated to echo his remarks from the most recent FOMC news conference, but keep an eye out for any further aggressive or dovish remarks since they might lead to significant changes.