The Dow index traded 0.58% higher on Wednesday despite pressure on Boeing shares. Moreover, markets were relieved after having voted out the prospect of a chaotic no-deal Brexit on Wednesday however UK Lawmakers are set to vote today on whether they will extend the date of UK’s withdrawal from the EU. On the data front, Durable goods orders rose in January and PPI data showed subdued inflation, thereby supporting the Fed’s patient approach on tightening monetary policy. There are no major headlines on the trade front to move markets in a confident direction and lack of clarity on Brexit further highlights the uncertainty of geopolitical risks.
The Dow Index managed to recover losses incurred by this week’s plunge in Boeing shares and closed higher at 25702. Price respected the resistance level around 25762 for a second time this week and must overcome this level to claw further gains and target the next resistance at 25880. Moreover, the shorter 20-period MA is looking to cross the longer 50-period MA thereby indicating a potential reversal of the short-term downtrend. Should price hold above the Bollinger mid-line, it may act as support on pullbacks as the Index rises. Alternately, a trade through the midline around 25590 would suggest a move back down.
Support: 25470 / 25380
Resistance: 25760 / 25880