Index Back on the Rise

The Dow Jones Industrial Average rose during its recent trading at the intraday levels, to achieve gains in its last sessions by 1.01%, to lose the index about 344.25 points and settle at the end of trading at the level of 34,564.60, after declining in Tuesday’s trading by -0.26%.

The 28 components of the 30 index rose, as JPMorgan Chase stock fell 3.2%, after the bank announced a drop in first-quarter earnings that came in contravention of Wall Street estimates, which put negative pressure on the financial sector.

On the other hand, Boeing Co. The best performer by percentage was 3.74, followed by Walmart Inc. by 2.60%, followed by American Express Co. by 2.31%.

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US Treasury Secretary Janet Yellen said Wednesday she is more concerned about the prospects of a recession in Europe given the impact of the war in Ukraine, but the Federal Reserve will also need luck and skill to maintain a strong labor market as inflation increases. “It’s not an impossible combination, it’s been done in the past,” Yellen told the Atlas Council.

Stocks rebounded after Federal Reserve Governor Christopher Waller said consumer price inflation levels in March may be “pretty much peak”, but the planned price hikes will continue, in an interview with CNN.

Meanwhile, the US Producer Price Index, which measures the wholesale cost of goods and services, jumped 1.4% in March due to higher gas and food prices, indicating that US inflation is likely to remain near a 40-year high during the spring.  Expectations were for a 1.1% increase.

Technically, the index’s rise came as a result of its support for its simple moving average for the previous 50 days, which helped it receive the positive momentum that helped it to close. This is in light of the dominance of the main bullish trend in the medium term along a slope line, as shown in the attached chart for a period of time. (Daily), We notice the start of positive signals on the RSI indicators, after they reached oversold areas, and exaggeratedly compared to the movement of the indicator.

Therefore, we expect more rise for the stock during its upcoming trading, as long as it remains above the 34,000 level, to target the first resistance levels at 35,372.26.