Dow Jones Forms Bullish Flag Pattern

Dow Jones Forms Bullish Flag Pattern
The Dow Jones index pushed higher on Thursday, rising circa 0.3% ahead of the US session, trading near 34,650 USD at the time of writing.
Regarding the war in Ukraine, President Vladimir Putin said that peace talks with Ukraine had hit a dead end. Instead, Putin promised that Russia would achieve all of its "noble" aims in Ukraine. 

"We have again returned to a dead-end situation for us," Putin told a news briefing during a visit to the Vostochny Cosmodrome east of Moscow. "We don't intend to be isolated," Putin added. "It is impossible to severely isolate anyone in the modern world - especially such a vast country as Russia."

However, it looks like markets have gotten used to it, and investors don't react to news from Russia/Ukraine anymore. 

In other news, yesterday’s data showed that the Producer Price Index (PPI) rose 11.2% yearly and was up 1.4% monthly. Both were the most since records began in 2010 and above economists’ forecasts. The core PPI, which leaves out volatile food and energy prices, increased by 7% yearly. The 0.9% advance in March was the largest since January 2021.

The index is currently trying to break from its flag pattern, which in this case, is a bullish continuation formation. The resistance of this flag is near 34,675 USD. We might see a leg higher if the price jumps above that level, targeting the 35,000 USD threshold. 

On the other hand, if sentiment deteriorates, we might see a decline to the 34,120 USD level, which could be the essential medium-term support. A breakdown below it might lead to a larger correction. 
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