Dow Jones Index (INDEXDJX: .DJI) had its worst week of 2023 as the index plummeted by 4.5% during the last week. The top US Index has lost more than 1300 points in the last 5 trading days. The upcoming rate hikes and the collapse of Silicon Valley Bank are currently the major events driving the US equities. Dow Jones Industrial Average is expected to remain volatile this week.
S&P 500 and Nasdaq 100 also showed a negative price action and closed the week making new monthly lows. DJI has immensely underperformed when compared to other major indices, as it dipped to fresh yearly lows on Friday.
On Monday, Dow Futures kept falling and slid by 0.12% during the London session. While the latest announcement from the US financial regulators has calmed the markets, investors are still waiting for further information on the fate of Silicon Valley Bank. Consequently, Dow futures are now down 73 points for the day.
The dollar strength index is showing weakness at the start of the week. Till press time, DXY index was trading at a 0.47% loss. This may result in a bounce in Dow Jones Index as the markets open today. The following price analysis reveals that DJI bears are on track for a huge win if the price loses a key level.
The basic technical analysis reveals key levels on Dow Jones Index (INDEXDJX: .DJI) chart. As evident from the following chart, the index made its fresh yearly lows in its last trading session. At the moment, DJI is heading for a retest of the November 2022 low that lies at 31727. This is a strong demand zone which may cause a nice bounce.
In event that the price fails to hold this level, then Dow Jones Index can dip to 30450 points very quickly. This will also put the likelihood of fresh 2-year lows that currently lie at 28660 points. To boost investor sentiment, the index needs to break above 200-day moving average in the next couple of weeks. This means a reclaim of the 32392 level.
This post was last modified on Mar 13, 2023, 12:24 GMT 12:24