Economy Is Effected By The High Inflation, A Bearish Perspective Might Happens On DJ30
The third round of negotiations between Russia and Ukraine didn’t comes with an agreement but concluded with “small positive” developments in improving humanitarian corridors. Inflation would reduce the profits of corporate, and the DJ30 may eventually fell back down.
Aggressors are recommended to consider marginal Short around the price of 32880. Take profit at 32500, Stop loss at 33040. Non-Aggressors are advised to wait for better entry.
The third round of negotiations between Russia and Ukraine had no substantive results yesterday. The military confrontation between the two countries continued. It caused the market risk appetite was being reduced, and investors are selling their risky assets. In addition, countries around the world imposed financial sanctions on Russia, and the United States and its allies may ban Russian crude oil imports. All of them have once again intensified market concerns about the interruption of Russian energy supply. The US crude oil rose to the $120/barrel mark, which also increased the concern of continued soaring inflation. The rise in prices may impact the disposable income of the people and increase the economic cost of enterprises. Started from March, no bond purchases in the United States. There are so many factors being a Fed rate hike on the this period, and it will tightening monetary policy, weakening consumer and corporate earnings. These expectations are all detrimental to the Dow’s gains.
The Day Chart. Below 5, 10, 20, and 60MA, the short-term is weak and oscillating. At the 4H Chart, the KD is dead fork down, the MACD negative column is increasing, and it leads to a bearish perspective. It is suggested to operate with buy orders at low prices first and sell at high prices/close positions at high prices. Please do wait for the price to rebound, and place a sell order with a light position.
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