The Dow closed in positive territory on Friday, aided by an upbeat US job reports. Investors were relieved to see that the 35-day government shutdown did not hinder the economy from gaining 304,000 jobs in January. However the strong labor market will draw attention to statements from Fed members this week as they asses their dovish stance in the face of a solid US economy. Moreover, The Fed’s recent dovish disposition alongside hopes of progress in US-China trade relations will continue to offer US equities a backbone as earnings reports come close to end.
Technical outlook on the DOW remains bullish however momentum is weakening leaving price to trade around the 200-day MA. Before the DOW can accelerate to form a new high past the resistance at 25150, price should sustain above the 25070 level to confirm buying pressure. On the other hand, an unlikely trade below the 20-period MA around 24930 may push the index to lower levels.
Support: 24930 / 24830
Resistance: 25070 / 25150