Wednesday, May 18, 2022

Wall Street Tests Support After NFP

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Dow Jones Index (DJI), USD, NFP Talking Points:

  • Russia and Ukraine remain at the forefront of risk appetite
  • Positive NFP report overshadowed by geopolitics
  • Fibonacci levels on the Dow Jones are showing key spots of potential support and resistance

NFP Grapples With Russia Ukraine Conflict

US Stocks have struggled to gain traction despite the release of an optimistic US NFP report. As the war between Russia and Ukraine continues to dominate headlines, positive economic data has limited gains for equity indices, allowing the Dow Jones to find support above the key psychological level of 33300.

At the time of writing, the DJI continues to trade in a confluent zone, formed by key Fibonacci levels of historical moves, the 76.4% retracement of the 2020 – 2021 move continues to hold bulls at bay at around 33708.

Although geopolitical tensions will likely assist in the catalyzation of price action for the imminent move, support and resistance currently remain between the respective levels of 32900 and 36000 while the MACD (moving average convergence/divergence) remains below the zero line, a potential suggestion that the bearish trend may continue to hold, at least for now.

Dow Jones (DJI) Daily Chart

Dow Jones Technical Analysis: Wall Street Tests Support After NFP

Chart prepared by Tammy Da Costa using TradingView

For now, further losses may support a decline towards the key psychological level of 32000 which paves the way for the March 2021 low at 30803.

— Written by Tammy Da Costa, Analyst for DailyFX.com Contact and follow Tammy on Twitter: @Tams707





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