Dow Jones index added about 1.5% since the start of the current week and is now trading at the mark of 24938.5 near an important resistance level of 4/8 Murrey or 25000.0.
Markets were supported by an index of business activity, which in February grew and reached 55.9 points against 53.3 a month earlier. Today, US president is to meet with representatives of companies involved in the oil and automotive industries to discuss the possible tariffs on imports of steel and aluminum in the amount of 25% and 10%, respectively. As noted by economists, this could adversely affect US companies that use these metals to produce their goods. The growth of the tariff will lead to additional costs, the trade markup will increase, and the competition in the world market can fall. Some world leaders have already stated that they do not agree with this protectionism policy and plan to develop a series of retaliatory measures, which can cause a surge in trade wars.
Today, data on production orders will be published, and the speech of William Dudley, the chairman of the Federal Reserve Bank of New York, is expected.
Support and resistance
Stochastic is at the level of 98 points and indicates the possible correction.
Resistance levels: 25000.0, 25211.5.
Support levels: 24609.4, 24218.8.
Short positions may be opened from the current level with take-profit at 24609.4 and stop-loss at 25082.0.
DJIA index of the American stock exchange
|Support levels||24218.8, 24609.4, 25000.0, 25211.5|
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