. Dow Jones Technical Analysis: Trading Insights

Dow Jones Technical Analysis: Trading Insights

06 Nov 2023

Dow futures rise after the market`s best week of 2023.

On Monday morning, Dow Jones futures, along with S&P 500 futures and Nasdaq futures, registered slight gains.

Dow Jones futures gained 0.1% in comparison to their fair value.

Berkshire Hathaway (BRKB), led by Warren Buffett, announced a significant increase in operating profit on Saturday.

The stock market enjoyed its most impressive week in 2023, as Treasury yields declined due to generally weak economic data, remarks from Federal Reserve Chairman Jerome Powell, and reduced Treasury debt issuance.

On Friday, the prominent US stock indices surged as US job growth decelerated beyond expectations, and wage inflation moderated. This reinforced the positive sentiment that the Federal Reserve’s interest rate hikes might be coming to a close as the new week began.

Investors will be eager to hear confirmation as several Federal Reserve officials are scheduled to speak this week, with two appearances from Chair Jerome Powell. The list also includes Regional Fed presidents such as John Williams and Raphael Bostic.


Technical Overview

Dow Jones is currently trading within an up channel.

Dow Jones is positioned above all Moving Averages (SMA).

The Relative Strength Index (RSI) is in a positive zone, while the Stochastic oscillator suggests a positive trend.

Immediate Resistance level: 34218.44

Immediate support level: 33792.34


Following an ascent, Dow Jones shaped a head and shoulder pattern, resulting in a sharp decline. After the downward movement, Dow Jones established a support level and then made an effort to reverse its direction. Currently, Dow Jones is in the process of recovery and is trading in the vicinity of a crucial resistance area. A breach of this zone could lead to additional upside potential.

TRADE SUGGESTION- STOP BUY – 34301.29, TAKE PROFIT AT- 34774.74, SL AT- 33993.55.