DJI Analysis after reaching 6.2 % CPI, Inflation rate
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U.S. stock markets opened lower on Wednesday after data showing the U.S. inflation rate hit its highest in over 30 years, something sure to put fresh pressure on the Federal Reserve to tighten monetary policy faster.
the Dow Jones Industrial Average was down 53 points, or 0.2%, at 36,267 points.
The DJI index had hit a record high within the last week after the Federal Reserve had indicated at its last policy meeting that it expected not to have to raise interest rates for another year.
Consumer prices rose 0.9 percent month over month in October and 6.2 percent year over year, according to the Labor Department, the highest rate in more than 30 years. The increase was broad-based, and the core CPI increase accelerated to 0.6 percent on the month, for an annual rate of 4.6 percent.
From a Technical point of view :
The DJI is still showing Bullish signs all over the technical side but this might reverse if the Federal Reserve doesn't come up with a plan to beat inflation, The market is trading at 36278.36 and could be moving to the first support line located at 36076.01 where it might pull up again, in case the situation doesn't change then we might see a further drop reaching the support located at 35456.54.
Technical Indicators show :
1) the market is still above the 10 20 50 100 and 200 MA and EMA (Bullish sign)
2) The RSI is at 67.22 and dropped from the overbought zone today, with no divergence found between the indicator and the market.
3) The ADX is at 25.94 indicating a trending market with a positive crossover between the DI+ (31.05) and DI- (16.30).
Support & Resistance points :
support Resistance
1) 35924.67 1) 36608.31
2) 35520.26 2) 36887.54
3) 35241.03 3) 37291.95
Fundamental point of view :
U.S. President Joe Biden said on Wednesday he has asked National Economic Council to work to reduce energy costs and the Federal Trade Commission to push back on market manipulation in the energy sector in a larger push to reverse inflation.
The Democratic president said he was committed to the independence of the Federal Reserve in its efforts to combat inflation. "Inflation hurts Americans pocketbooks, and reversing this trend is a top priority for me," he said in a statement.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
U.S. stock markets opened lower on Wednesday after data showing the U.S. inflation rate hit its highest in over 30 years, something sure to put fresh pressure on the Federal Reserve to tighten monetary policy faster.
the Dow Jones Industrial Average was down 53 points, or 0.2%, at 36,267 points.
The DJI index had hit a record high within the last week after the Federal Reserve had indicated at its last policy meeting that it expected not to have to raise interest rates for another year.
Consumer prices rose 0.9 percent month over month in October and 6.2 percent year over year, according to the Labor Department, the highest rate in more than 30 years. The increase was broad-based, and the core CPI increase accelerated to 0.6 percent on the month, for an annual rate of 4.6 percent.
From a Technical point of view :
The DJI is still showing Bullish signs all over the technical side but this might reverse if the Federal Reserve doesn't come up with a plan to beat inflation, The market is trading at 36278.36 and could be moving to the first support line located at 36076.01 where it might pull up again, in case the situation doesn't change then we might see a further drop reaching the support located at 35456.54.
Technical Indicators show :
1) the market is still above the 10 20 50 100 and 200 MA and EMA (Bullish sign)
2) The RSI is at 67.22 and dropped from the overbought zone today, with no divergence found between the indicator and the market.
3) The ADX is at 25.94 indicating a trending market with a positive crossover between the DI+ (31.05) and DI- (16.30).
Support & Resistance points :
support Resistance
1) 35924.67 1) 36608.31
2) 35520.26 2) 36887.54
3) 35241.03 3) 37291.95
Fundamental point of view :
U.S. President Joe Biden said on Wednesday he has asked National Economic Council to work to reduce energy costs and the Federal Trade Commission to push back on market manipulation in the energy sector in a larger push to reverse inflation.
The Democratic president said he was committed to the independence of the Federal Reserve in its efforts to combat inflation. "Inflation hurts Americans pocketbooks, and reversing this trend is a top priority for me," he said in a statement.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.