Current trend

With the opening of the European session, Dow Jones index slightly decreases and is traded near the support level of 26367.2 or 2/8 Murrey. If it will be broken through, the next target will be 26269.5.

The market is still pressured by the growth of yield of US bonds, while the high interest rate and good macroeconomic indicators provide an additional inflow of capital into debt instruments. This week, another placement of debt securities worth about USD 230 billion will also take place. Yesterday, shares of IT companies fell: so, Apple fell by -0.23% and Microsoft by -1.14%. Dividend yield continues to decline and companies do not look so attractive for investment. The main macroeconomic issue remains the Italian crisis and the disagreements of the authorities regarding the budget deficit and high public debt. In view of this, the yield on Italian bonds is growing, and shares of companies in the banking sector continue to decline.

Today, there would be no important economic news, so one should not expect a significant movement in the market.

Support and resistance

Stochastic is at 72 points and does not provide a signal for the opening of positions.

Resistance levels: 26464.8, 26562.5.

Support levels: 26367.2, 26269.5.

Trading tips

Short positions may be opened after a breakout of the support level of 26367.2 with take profit at 26269.5 and stop loss at 26398.0.

DJIA index of the American stock exchange

BuySellSpread
25460.525452.580

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point26366.0
Take Profit26269.5
Stop Loss26398.0
Support levels26562.5, 26464.8, 26367.2, 26269.5
YM: general review

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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