US stocks closed higher as market sentiment recovered following a report that officials from the U.S. and China are working to resume trade negotiations to ease tensions. Dow Jones gained 224 points closing at 242924, Nasdaq climbed 1.4% / 107 points ending at a record on the back of a rally in internet and technology giants, which helped to overshadow ongoing uncertainty over trade relations.
The Dow Jones Index pulled back from the 200 MA all the way to 24924 building a triangle chart pattern. More upside is likely once price breaks above the triangle pattern. A bullish breakout above the resistance trend line 25200 would confirm a potential uptrend continuation. A break below the support 24700 however would indicate a bearish reversal or extended correction. Volatility remains a concern and the index has been very choppy recently.
Support: 24700 24300
Resistance: 25200 25450