The index closed higher last week after hitting its highest level since the week ending March 2. The rally was fueled by positive earnings reports, low exposure to technology stocks, and the softening of trade tensions between the United States and the European Union. However, a selloff was witnessed during the last hours of Friday's trading session with the Dow Jones Industrial Average finishing in the red down 0.3%, partially reflecting a negative reaction to earnings news from companies such as Twitter, Intel and Exxon Mobil. It will be interesting to see the trading action this week, likely to be determined by traders reaction post GDP figure. The economic events calendar today has US pending home sales at 6.00 pm UTC+4.
From a technical perspective, the Dow Jones index is likely to move down targeting its support at 25181 following the negative move in the last few hours of Friday's trading session. However the main trend is up, and therefore traders are expected to buy around the 25181 support area. The RSI looks mixed signalling some choppy trading action for the near term.
Support: 25181 25129
Resistance: 25432 25531