US Indices ended in positive territory on Tuesday at the back of positive earnings reports. The Dow Index gained over 100 points early session, led by gains in United Health Group shares, before nudging down to end 0.26% higher. Meanwhile in economic data, US Industrial production declined in March and today the US publishes trade balance report which is expected show the deficit rise in February. On the other hand, Today’s Chinese data beat expectations and showed the economy grew 6.4% Y/Y in the first quarter and Industrial production rose 8.5% , registering the highest number in 4 years. Improving conditions in the world’s second largest economy should keep risk appetite intact while earnings reports will be the main driver for US equities.
The Dow Index surpassed resistance at 26470 and approached October’s high at 26530 before ending at 26452. The price can be seen rising with the upper band and holding above the 20-period MA suggesting the index should drift higher to break through the 26530 level and extend the upside move. While the overall outlook remains bullish, Failure to hold above the 20-period MA around 26380 would suggest short-term weakness and target the support at 26260.
Support: 26380/ 26315
Resistance: 26530/ 26590