Indices

Dow Jones Index Breaks Out Above 34,300 As US Stocks Extend Gains

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Written By: Abdullah Sarwar

Nov 13, 2023, 23:56 GMT 23:56

Summary:

Dow Jones Index is looking very bullish as it has broken above 34,300 points for the first time since September 2023.

Dow Jones Index gains 91 points ahead of a data-heavy week, with a key focus on the release of the CPI report for the month of October. According to consensus, a year-over-year inflation rate increase of 3.3% is expected to be reported on Tuesday, which is notably lower than last year’s 3.7%.

Investors will be eagerly waiting for the CPI report which is due on Tuesday after the Federal Reserve hinted that interest rates are likely to remain high. Furthermore, Fed Chair Jerome Powell has expressed concerns about the persistent threat of inflation, which may require interest rates to remain elevated for a longer period.

Dow Jones Industrial Average

In my previous Dow Jones index forecast, I predicted a bounce towards 33,780 points due to the presence of a bullish divergence on the RSI and MFI indicators. This forecast has been perfectly met as currently, the benchmark index is sitting at 34,340 points.

The chart also shows the Dow Industrial Average is retesting the 34,245 points resistance level. If the index successfully flips this level into a support level, the bulls can anticipate a retest of the 35,629 level, which is the yearly high.

This post was last modified on Nov 13, 2023, 23:56 GMT 23:56

Written By: Abdullah Sarwar

Abdullah Sarwar is a blockchain analyst and a cryptocurrency investor with more than 5 years of experience. He specializes in providing crypto price projections based on their fundamentals and price charts. He is also a successful day trader. He graduated in 2015 with a degree in electronic engineering. In his free time, he loves listening to electronic music and playing with trading bots.