An upbeat earnings report from Intel was enough to send Dow Jones futures up on the day. The Dow Jones Industrial Average is poised for a higher open on Friday trade as shares of Intel Corp surged on the back of strong earnings which beat estimates. The Dow Jones futures are trading at 29,160 or 0.3% higher on the day. However, it is still trading lower for the week as the markets try to shake off the contagion of selloffs which was prompted by the coronavirus outbreak. The WHO’s decision not to declare the coronavirus outbreak a global health emergency has served to boost investor confidence and prop up the Dow Jones futures.
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Technical Outlook for Dow Jones
The Dow Jones futures are presently trading higher on the day after yesterday’s lower close. Price was able to touch off the resistance posed by the upper ray of the pitchfork, which intersected the 29,.236 price level which corresponds to the 38.2% Fibonacci extension from the swing low of August 2015 to the swing high of October 2018.
29300.3 remains the all-time high to beat. If the Dow can maintain upside momentum from more positive earnings reports, we could see a retest of these levels in the coming days.
However, the coronavirus outbreak remains a concern; a worsening of the epidemic could spook the markets again. A renewed selloff as the flip side of the market scenarios could cause the Dow Jones futures to retest the 27 December previous high at 28731.7 (where the horizontal price level intersects the median line of the Andrew pitchfork indicator). Further downside targets lie at the 26 November and 12 December 2019 prior highs at 28166.4 and 27765.9 (13 November and 4 December 2019 highs).