Dow Jones index continues to recover after the fall on Tuesday. At the moment, the price is near the important support level of 24609.4 or 4/8 Murray, the resistance is at 24707.0
The decline was caused by the fear that the political crisis in Italy would provoke the economic one and the country's exit from the EU. In the political circles of the country, disagreements arose over the potential Minister of Economy, Paolo Savona, who is a strong supporter of the withdrawal from the EU and the introduction of the national currency. But the president of the country opposed and appointed Carlo Cottarelli, ex-economist of the International Monetary Fund. Many parties called for impeachment to the president and holding early elections.
Despite some difficulties, Italy still managed to place debt securities worth EUR 5.57 billion, and demand showed that many participants believe in the reconstruction of the country. In view of this, many European and US indices continue to grow. Yesterday, data on US GDP was published, which was revised to 2.2%. ADP recorded an increase in employment to 190K, also supporting the quotes of the stock index.
Support and resistance
Stochastic is at the level of 80 points and indicates a possible correction.
Resistance levels: 24707.0, 24804.7.
Support levels: 24609.4, 24511.7.
Long positions may be opened from the support level of 24609.4 or 4/8 Murray with take-profit at 24804.7 and stop-loss at 24511.7.
DJIA index of the American stock exchange
|Support levels||24511.7, 24609.4, 24707.0, 24804.7|
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