During the opening of the trading week, Dow Jones index is trading in the green zone: the price has reached the level of 24768.0, the next resistance level is 25000.0.
The demand for stock assets is due to the positive US economic statistics. The Unemployment Rate is falling and reached the level of 3.8, which is an 18-years minimum. Nonfarm Payrolls increased to 223K against the expectations of 188K thousand. Strong data leaves no doubt that Fed will continue to raise the interest rate, which will support USD.
However, the US-China trade war escalation is still possible. Investors fear that Beijing, as one of the main US debt holders, will begin selling it. Government bonds’ yield will increase, debt service will become more expensive, the budget deficit will grow, which can cause a significant fall in the stock market and a new economic crisis.
Support and resistance
Stochastic is around 98 points and reflects a possibility of a correction.
Resistance levels: 25000.0, 25100.0.
Support levels: 24609.4, 24307.0.
Short positions can be opened from the level 25000.0 with the target at 24798.3 and stop loss 25100.0.
DJIA index of the American stock exchange
|Support levels||24307.0, 24609.4, 25000.0, 25100.0|
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