Dow jones, Time frame: 4h, Tools: SMA50, Source: TradingviewDow jones, Time frame: 4h, Tools: SMA50, Source: Tradingview

Despite recording its second consecutive weekly decline, the Dow Jones Index is currently attempting to maintain stability between a support zone near 52,000 and a resistance zone near 53,000. Markets are awaiting second-quarter corporate earnings results, alongside a monthly inflation slowdown at its fastest pace in six years and expectations that the Federal Reserve will keep interest rates unchanged at next week’s meeting. However, the renewed tensions in the Middle East and the return of rising oil prices remain the key challenges for any expected upside move.

The chart shows prices continuing to trade below the 50-period moving average, currently around 52,450, which will also be considered a technical resistance level. Overall, price action appears to be forming a bearish pattern, and this pattern will only be treated as a continuation pattern of the previous trend if the 53,000 resistance level is breached.