The Dow Jones 30 Index was not affected by the US interest rate cut decision by 25 basis points, contrary to expectations, as the index continued to record new gains. The index is currently trading at $41,924, exceeding the major moving averages crossings that reinforce the upward trend. In addition, the MACD indicator indicates continued purchasing power, which opens the door to further gains for the index in the coming period.
Technical Analysis of the Dow Jones 30 Index: Technical Outlook
Looking at the technical chart, we find that the Dow Jones 30 Index is trading steadily above the moving averages, providing strong support for the upward trend. These crossings show positive signs of continued upward momentum, as the index’s performance reflects investor confidence despite the interest rate cut.
The MACD indicator indicates continued buying momentum, as the rising line remains significantly higher than the falling line, which enhances the chances of the index continuing to rise. The Relative Strength Index (RSI) is also showing positive levels, indicating that the market has not yet reached overbought conditions, allowing for further gains.
Indicators Expectations
- MACD Indicator: Indicates continued buying momentum, which enhances the possibility of the index continuing its upward trend.
- Moving Average Indicators: Remain supportive of the upward trend, as the index is trading steadily above these levels.
Trading strategies based on Buy/Sell levels
| US30 | In case of buying | in case of selling |
| Entry point | 42039 | 41833 |
| Target Point 1 (TP1) | First resistance: 42198 | First support: 41655 |
| Target Point 2 (TP2) | Second resistance: 42250 | Second support: 41600 |
| Stop Loss (SL) | 41833 | 42039 |
The Dow Jones 30 Index appears to have strong upward momentum, supported by its trading above the moving averages and the continued buying momentum indicated by the MACD indicator. Despite the US rate cut decision, the index did not take a negative impact and continued to post gains. If the current momentum continues, we could see the index heading towards the $42,200 level in the near term. However, the key support level remains at $41,650 in case of any minor corrections.
