US and world stock indexes continue to grow. Investors were encouraged by reports of the resumption of negotiations between the US and China with a view to resolving the trade conflict between the countries. Market participants also expect that strong US economic data and financial results of companies will continue to support the indices.
DJIA rose on Monday by 0.3%, to 25758.69 points, the highest level of closure since February 1. S&P500 added 0.2%, reaching 2857.05 points, which is 0.6% lower than the January record. Nasdaq Composite increased by 0.1%, to 7821.01 points. All three major US indices are growing on Tuesday for 4 consecutive days.
The main risk for the economy and the stock market at the moment are trade conflicts. As they weaken, the growth of US stock indices is likely to accelerate.
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Support and resistance levels
DJIA retains positive dynamics, trading in the ascending channels on the daily and weekly charts. Above the short-term support level of 25260.0 (EMA200 on the 4-hour chart and the bottom line of the rising channel on the daily chart), only long positions should be considered.
The breakdown of the support level of 25260.0 may provoke a deeper correction decrease to the key support levels 24775.0 (EMA144 on the daily chart), 24450.0 (EMA200 on the daily chart). Near these levels also passes the bottom line of the rising channel on the weekly chart.
In general, the positive dynamics remains. Only the breakdown of the support level of 24050.0 (the Fibonacci retracement level of 23.6% of the correction to the growth from the level of 15650.0 in the wave that began in January 2016. The maximum of this wave and the 0% Fibonacci level are near the 26620.0 mark) may call into question the DJIA's bullish trend.
DJIA is growing, heading toward resistance level 26620.0 (absolute and annual highs).
Support levels: 25670.0, 25260.0, 25000.0, 24775.0, 24450.0, 24050.0
Resistance levels: 26000.0, 26200.0, 26620.0
Trading Scenarios
Buy in the market. Stop-Loss 25650.0. Take-Profit 26200.0, 26620.0
Sell Stop 25650.0. Stop-Loss 25800.0. Take-Profit 25260.0, 25000.0, 24775.0, 24450.0
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