Slobodan Drvenica
Windsor Brokers
DOW JONES
Dow Jones future contract for December delivery retested new record high posted earlier today on acceleration after Wall St opening.
Reduced tensions over North Korea and rally of financials and industrial stocks lifted Wall St on opening, with focus turning towards this week’s two-day FOMC meeting which starts on Tuesday.
Markets are expecting signs of beginning of reduction of massive US balance sheet, but also focus on comments from Fed chief Janet Yellen regarding inflation, which was the biggest obstacle for the Fed to further raise interest rate.
The Dow index posted new all-time high at 22303 on Monday, in extension of steep ascend in past five days which resulted in eventual break above previous record high at 22131.
Strong bullish sentiment could drive the price further in the uncharted territory, with initial target laying at 22341(Fibo 138.2% projection) with stretch towards Fibo 161.8% projection at 22472, being in play.
The rally could be interrupted by corrective actions signaled by overbought conditions on daily chart, but so far lacking firmer correction signals.
Dips are expected to be limited, with former high at 22131, offering solid support, followed by rising Tenkan-sen at 22000, which is expected to contain extend dips.
Res: 22341; 22472; 22552; 22682
Sup: 22223; 22131; 22066; 22035
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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