The Dow rose 0.68% to close at a fresh high of 25,411 alongside upbeat earnings reports, underscoring the boost corporate profits have offered US markets. Moreover, a dovish Fed and positive economic data have supported the equities market and lifted investors’ sentiment, keeping the Dow index in its bullish phase. However the decline of 1.3 points in the non-manufacturing index point to some weakness in the economy. Going forward, investors will focus today on statements from FED members including Chairman Powell, following January’s dovish stance and unchanged interest rates.
The Dow index extended its uptrend to resistance zone of 25370. While the RSI has exited the overbought region, the price will retreat and range whilst sustaining above the 20-period MA before retesting resistance at 25370 to target a higher level around 24590.
Support: 25250 / 25160
Resistance: 25370 / 25490