The Dow Jones index continues to strengthen: the price has broken the resistance level of 25781.3 and is moving towards 26171.9 or 7/8 Murrey. The traders are focused on elections to the House of Representatives. If the Democrats win up, it will have a negative impact on Trump’s current policy, and a number of infrastructure projects can be minimized. The second problematic issue is increasing the budget deficit and the national debt ceiling. As political observers suggest, in order not to lose the rating, Trump can focus on foreign policy, which will intensify the trade war between the United States and China and tighten policy toward Iran.
Today, data on oil reserves will be published, and tomorrow special attention should be paid to Continuing Jobless Claims and Fed interest rates decision. Most analysts expect rates to be increased, so a correction in the stock market will be possible.
Support and resistance
Stochastic is at 79 points and does not give signals for opening positions.
Resistance levels: 26171.9, 26326.0.
Support Levels: 25508.1, 25000.0.
Long positions can be opened from the current level with the target at 26171.9 and stop loss 25635.0.
DJIA index of the American stock exchange
|Support levels||25000.0, 25508.1, 26171.9, 26326.0|
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