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US Dow Jones Index (US30) Analysis
The most important relevant economic data on today’s economic agenda:
- Consumer Prices (Annual): Expected: 3.4% | Previous: 2.4%.
- Annual Core Consumer Prices: Expected: 2.5% | Previous: 2.5%.
- Consumer Prices (Monthly): Expected: 1.0% | Previous: 0.3%.
- Monthly Core Consumer Prices: Expected: 0.3% | Previous: 0.2%.
Technical vision and expected scenarios:
Based on the chart, we note that the Dow is experiencing a strong bullish surge after a series of successful bounces from previous support levels; this resulted in a test of around 48,251 points after breaking out and holding 46,837 points. Based on what we’ve seen from these moves, this suggests relative control on the demand side in the short term.
We also note that price and trading are clearly stabilizing above the moving averages (20 and 50), which confirms that buyers are in control. Additionally, the relative strength index (RSI) curve is currently settling above the 50 level and reaching overbought territory, which could signal the possibility of a price pullback.
Based on this, here are the possible scenarios:
1. Positive Scenario:
A breakout and stabilization above the 48,251 level could open the door to the 48,894 target, while a breakout and stabilization above the 48,894 level could lead to a move to 49,778.
2. Scenario:
Holding below 48,251 points and consolidating sideways below is a sign that supply and demand have reached a stage of balance.
3. Negative Scenario:
A decline, breakout and hold of the 47,473 level could signal weakness in purchasing power and the beginning of a deeper decline, perhaps targeting the 46,837 level.
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