Wednesday, April 24, 2019

DOWJONES - 24 April 2019


Fundamental Highlights

US indices posted strong gains on Tuesday catalyzed by upbeat earnings reports from a range of companies. To aid the positive sentiment, US new home sales data rose well above estimate by 4.5% in March . Given that the apprehension over the US economy’s performance led to low expectations for this earnings season, corporate results are expressive of markets’ sigh of relief as the majority beat estimated figures. As earnings reports are expected to stretch prices even higher, today the Dow Index’s concern lies in Boeing's earnings as the stock has recently declined and may contribute to an underperformance on the Index depending on the results. On the global trade front, US and China will reportedly initiate another round of trade negotiations on April 30 thereby affirming semblance of progress between the two nations.

Technical Analysis

The Dow bounced off of Monday’s dip and rose 0.55% to end at 26656 . The Index is now within spitting distance from its record high at 26940 and should consolidate gains above 26570 before breaking above the 26680 level to target higher resistance at 26790. Below 26570, the Index can find support at the 20-period MA at 25620 to mark the presence of buying pressure followed by the support trend line from March.

Support: 26520/ 26440
Resistance: 26680/ 26790

Chart (H4)