DOW JONES PRICE NEWS & TECHNICAL ANALYSIS FORECAST – 21 FEBRUARY 2023
21 Feb 2023
Home Depot’s results disappoint ahead of the PMI report, causing the Dow futures to drop 225 points
U.S. stocks are seen opening lower Tuesday, following disappointing results from Home Depot as concerns mount about the potential for the U.S. economy to tip into recession.
At 07:00 ET (12:00 GMT), the Dow Futures contract was down 225 points or 0.7%.
U.S. investors are set to return to the markets Tuesday after starting the week with a holiday to celebrate Presidents’ Day, and sentiment remains generally weak.
The blue-chip Dow Jones Industrial Average fell marginally last week, its third straight weekly decline
Fears that the U.S. Federal Reserve will sanction more interest rate hikes than initially expected to combat sticky inflation has hit sentiment, and this means Wednesday’s release of the minutes from the last Fed meeting will be the week’s highlight.
Ahead of this, Tuesday sees flash PMI data which should provide a guide to the strength of the U.S. manufacturing and service sectors.
The equivalent data in Europe, out earlier Tuesday, showed a sharp pickup in the dominant services sector, but the news was less impressive when looking at manufacturing.
In corporate news, it’s the turn of the retail sector to post dominant earnings this week.
Home Depot (NYSE: HD) stock fell over 4% premarket after the home improvement chain missed fourth quarter sales estimates and forecast annual profit below expectations, hurt by higher supply chain costs.
The Federal Reserve’s release of its Jan. 31-Feb. 1 meeting minutes could be a market-moving event this week, as traders continue to search for clues on the central bank’s next policy moves.
The minutes are slated for release Wednesday at 2 p.m. At that meeting, the central bank hiked rates by 25 basis points and noted it expects “ongoing” increases.
DOW JONES TECHNICAL ANALYSIS DAILY CHART:
Dow Jones is currently trading in up channel.
Dow Jones is currently trading below all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting downtrend.
Dow Jones’s immediate resistance is at 33739.58 & its immediate support level is 33562.71
HOW TO TRADE DOW JONES IN THIS WEEK
Dow Jones is trading in up channel, but it has broken the previous day low and now it is at an important support zone if it breaks, we can see a fall to the downside.