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

• بواسطة دكتور علي جمال عبد الجواد
• 2026 Jan 01
• 4059

 

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

 Dow Jones Industrial Average (DJI):

 

First: Index Overview

The Dow Jones Industrial Average closed at 48,063.29 points, down 303.77 points (-0.63%), within a daily range of 48,050.88 – 48,394.51 points.

The index's yearly range is between 36,611.78 – 48,886.86 points, indicating that the index is approaching its yearly highs with some selling pressure.

 

Timeframe Performance:

Daily: -0.63%

Weekly: -1.37%

Monthly: +1.64%

3 Months: +3.49%

6 Months: +8.02%

Yearly: +12.97%

5 Years: +57.04%

The index shows strong long-term gains (5 years +57%), but is experiencing slight daily and weekly volatility towards the end of the year, reflecting some selling pressure ahead of the end of 2025.

 

Technical Analysis

Short-Term Trend: Negative today (-0.63%), with a pullback coinciding with the end of the week, but still above the yearly support levels.

Resistance Levels: Located at 48,400 – 48,900 points, near the 52-week high. A break above this level would reinforce the upward trend.

Support levels: Located at 48,000–47,800 points. A break below this range could open the door for a correction towards 47,000–46,500 points.

Momentum indicators: The positive monthly and long-term performance (+12.97% year-on-year) reflects the relative stability of the US market despite short-term volatility.

 

Financial analysis:

 

Trading volume: 336,064,471 shares, with a 3-hour average of 505,150,758 shares, reflecting relatively high activity towards the end of the year.

Volatility: The daily range is relatively narrow, but the monthly and weekly movements suggest slight selling pressure before the end of the year.

Long-term performance: Over the past 5 years, the index has risen by +57.04%, reflecting the stability of the US economy and its outperformance of most global markets in long-term growth.

 

Fundamental Analysis

US Economy: Moderate growth with relatively stable inflation and relatively low interest rates.

Leading Companies: Major technology, industrial, financial, and energy companies are the main drivers of the index.

Monetary Policy: Any potential interest rate changes by the Federal Reserve could affect the short-term trend but are not expected to alter the long-term momentum.

 

Sectoral Analysis

Technology: Some major stocks are experiencing relative selling pressure after the year's gains, but remain strong in the long term.

Industrial and Financial: Relatively stable, with strong earnings support from leading companies.

Energy and Commodities: Moderate performance, with limited impact on the overall index trend.

 

Outlook

Short-Term: The US market is facing slight selling pressure, with support at 48,000–47,800 points. A break below this level could lead to a correction to lower levels before the end of the first quarter.

Medium-Term: The overall trend is bullish, with a potential test of the yearly upper resistance at 48,886 points and continued growth momentum.

Risks: Interest rate changes, inflation fluctuations, or geopolitical events could increase short-term volatility.

• الوسوم
• Professor
• Ali
• Gamal
• Abdelgawad:
•  Dow
• Jones
• Industrial
• Average
• (DJI):
• Professor Ali Gamal Abdelgawad:  Dow Jones Industrial Average (DJI):