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Professor Ali Gamal Abdelgawad: Dow Jones Industrial Average (DJI – New York)

 

Prepared by: Professor Ali Gamal Abdel Gawad – Lecturer of Investment and Finance

Dow Jones Industrial Average (DJI – New York)

 

Fundamental Analysis

Index Description: The Dow Jones Industrial Average is an index comprising 30 of the largest U.S. industrial and service companies, reflecting the overall performance of the U.S. economy.

U.S. Economy: The index's positive performance reflects optimism regarding economic growth, corporate earnings, and Federal Reserve policies.

Influencing Factors:

U.S. Monetary Policy and Interest Rates

Employment and Economic Growth Data

Quarterly Earnings of Major Listed Companies

 

Technical Analysis

Current Price: $48,134.89, Up 0.38% (Daily)

Today's range: $47,974.82 – $48,289.63

52-week range: $36,611.78 – $48,886.86

Short- and long-term trends:

Daily: +0.38%

Weekly: -0.67%

Monthly: +5.21%

Three months: +3.93%

Six months: +14.05%

Yearly: +12.36%

Five years: +59.50% → Indicates stable long-term growth

Support and resistance:

Short-term support: $47,900 – $48,000

Nearby resistance: $48,280 – $48,300

52-week high: $48,886 → Potential target if the uptrend continues

 

Financial/Investment Insight

Trading volume: 1,251,835,081 shares → Heavy trading volume

3-hour average trading volume: 530,390,648 shares → High activity

Volatility: Daily difference $314.81 (48,289.63 – 47,974.82), moderate volatility for the index

Long-term return: The index has risen +12.36% over the past year and +59.50% over the past five years, making it a good choice for investors seeking long-term investments in major US stocks

Conclusion and Recommendations:

The Dow Jones Industrial Average is in a long-term uptrend despite some short-term corrections.

Current support: 47,900 – 48,000

Current resistance: 48,280 – 48,300

52-week high: 48,886 → Potential target if the upward momentum continues

This indicator is suitable for long-term investors. Short-term traders should monitor support and resistance levels for potential reversals.

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