US Dow Jones Index (US30) Analysis – Price Movement and Expected Scenarios?

On the economic agenda not too long ago were:

• Monthly producer prices rose 0.5%, higher than expected.
• Core monthly producer prices, which exclude food and energy, were also higher than expected at 0.7%.

As for the indicator’s technical perspective, it’s clear from the daily chart that trading and price action are moving in parallel, perhaps indicative of a state of balance between the forces of supply and demand.

Based on these moves so far, here’s what could happen in the upcoming trade:

• Casual scene:
  An extension of the sideways trend is seen with stability below 49715 and above 47837 to express continued uncertainty and balance between supply and demand forces.
• Positive scenario:
  A breakout and hold above 49715 may indicate buying control on the demand side and we may see further gains and target new highs above this level.
• Negative scenario:
  Seeing further declines below 47,837 could indicate that the supply side is under selling control, perhaps targeting lower levels around 45,750.

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