. Dow Jones Price Forecast & Technical Analysis - 30 March 2023

Dow Jones Price Forecast & Technical Analysis – 30 March 2023

30 Mar 2023

Jobless claims and GDP statistics are upcoming as the Dow futures increase by 195 points.

U.S. stocks are seen opening higher Thursday, adding to the gains from the previous session as fears about the banking system fade and investors try to gauge the Federal Reserve’s plans. 

The Dow Futures contract was up 195 points, or 0.6%.

The main indices closed with strong gains Wednesday, with the tech sector leading the way on rising expectations the Federal Reserve may pause its rate-hiking cycle when its policymakers next meet in May.

The blue-chip Dow Jones Industrial Average closed over 300 points, or 1%, higher. putting it on course for a 13% gain by the end of the quarter, which would be the index’s best advance since the fourth quarter of 2020.

While the tensions surrounding the banking sector appear to be easing, investors are still worried that the pressure on lenders this month will translate into a pullback in lending, likely hitting economic growth going forward.

The moves over the week stem from Wall Street’s attempts to weigh varying factors, said Thomas Martin, senior portfolio manager at Globalt Investments. Those factors, he said, include the latest batch of corporate earnings, the future path of interest rates and potential for a recession, and, as of recent weeks, the state of the banks.

Investors are starting to factor in the Fed pausing its battle against inflation, although this view could be affected by the release Friday of the U.S. central bank’s favorite gauge of inflation, the core PCE prices index.

Ahead of that, the final reading for the fourth quarter gross domestic product is expected to show growth of 2.7% from the prior quarter, while weekly initial jobless claims are expected to be 196,000, which would be up from 191,000 the prior week. Both releases are due at 08:30 ET (12:30 GMT).

Additionally, Boston Federal Reserve President Susan Collins, Richmond Fed President Thomas Barkin and Minneapolis Fed President Neel Kashkari are all scheduled to speak later in the session.

DOW JONES TECHNICAL ANALYSIS DAILY CHART:

  • Dow Jones is currently trading in up channel.
  • Dow Jones is currently trading above 5&20 SMA.
  • RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
  • Immediate resistance is at 33009.96 & its immediate support level is 32892.85
  • HOW TO TRADE DOW JONES IN THIS WEEK

The Dow Jones is presently trading higher; it broke its previous day’s high, and if it continues to trade above the resistance level, further gains may be possible.

TRADE SUGGESTION-BUY AT 33009.96, TARGET AT 33322.25, SL AT 32799.54