US indices traded modestly higher on Thursday as another batch of US corporate earnings provided support while disappointing economic data limited the upside potential. The Philly Fed Manufacturing Index fell from 12 to 5.6 in October, Housing starts came below expectations while building permits beat expectations. On geopolitical news, a Brexit draft has gone as far as receiving approval from the EU however has yet to be approved by the UK parliament. While the news improved sentiment, the US-China trade war remains a factor to watch for. There are no major US economic releases to impact price action and influence will be left to Brexit and trade headlines.
The Dow fluctuated between gains and losses before ending 23 points higher at 27025. The price managed to find support at 26880 and briefly inched above the resistance at 27084. Failure to break above this resistance level would maintain range-bound price action until the index trades below the dynamic support provided by the 20-period MA and subsequently breaks below the 26880 level to target the 200-period MA near 26760.
Support: 26880/ 26760
Resistance: 27110/ 27187