Stock Market » Dow Jones hits key level as stocks continue their rally

Dow Jones reaches key level as stocks rise

Equity investors have already digested these hawkish central bank meetings, but what next?

After Tuesday’s bullish reversal in the stock market, we saw big moves in European stocks today before Wall Street provided an additional surge in purchasing power. Markets have recouped most of their losses from hawkish ECB and FOMC meetings. However, it remains to be seen if the sellers will return now that the majors are testing key levels, given that we didn’t have many bullish catalysts after those central bank meetings.

Market sentiment remains largely incredulous. The two-day bounce we saw suggests that investors have already digested these hawkish central bank meetings. But I’m struggling to come up with compelling reasons why bulls will continue to buy stocks on the stock market in the future. So there could be even more drama in these last trading days of 2023.

I think the markets are in for a bumpy ride as high inflation continues to hurt consumer pockets and therefore corporate sales and bottom line. And with further rate hikes looming, this is a far from ideal environment for stock markets to thrive.

In any case, we will leave the basics aside and focus on the charts. And one particular market that just caught my attention is the Dow:

Source: Tradingview, Stone X

At the time of this writing, the Dow was testing key resistance around 33400. As you can see, this level was the last major support before it was breached last week. Once support, can it now turn into strong resistance leading to a sell-off?

If resistance holds here, I expect to see a return to Tuesday’s range high at 33,000. And if this level fails to offer support, we may see further revision from the week’s low at 32,500. 200 comes into play. -day moving average.

However, if the resistance at 33400 breaks convincingly, it will end the new bearish trend.

Text: Fawad Razaqzada, » Official site stock exchange FOMC

Disclaimer: The information and opinions contained in this report are for general information only and do not constitute an offer or solicitation to buy or sell any currency contracts or CFDs. Although the information contained in this document has been obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness and shall not be liable for any direct, indirect or consequential damages that may result from anyone relying on such information.

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