Dow Jones gained 0.39% what's next ?Hello everyone, as we all know the market action discounts everything :)
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U.S. stocks were higher after the close on Tuesday, as gains in the Basic Materials, Technology, and Healthcare sectors led shares higher.
The Dow Jones Industrial Average rose 138.79 points, or 0.39%, to 36,052.63
Possible Scenario for the market :
The market is trading right now at $36052.64 and the trend is moving with a strong Bullish momentum that started on the 28th of October, After a sudden drop in the market.
This Bullish movement will probably be reaching the $36115.86 resistance level where it will be aiming to breakout that level to reach the resistance at $36380.11.
In case the Bears tried to make a move then we could be seeing a drop that most likely won't reach any further than $35456.54.
Technical indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish signs)
2) The MACD is above the 0 line indicating a Bullish state in the market, with a positive crossover between the MACD line and Signal line.
3) The STOCH is in overbought zone with a positive crossover between K% (97.80) and D% (96.21)
Weekly Support & Resistance points :
support Resistance
1) 35575.99 1) 35978.05
2) 35332.38 2) 36136.50
3) 35173.93 3) 36380.11
Fundamental point of view :
The Fed will release a statement at the end of its two-day meeting on Wednesday when it is expected to announce the start of tapering its bond-buying program. Markets also are pricing an interest rate hike at the Bank of England meeting on Thursday.
"Most times, markets are happiest when they get predictability when they get what they expect, and I think the expectation is that they are going to taper," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
