Dow Jones has hit a new record-high as strong economic data continue to boost investors’ confidence on the recovery of the US economy. On Friday, the US PPI reading came in at 1.0%. Analysts had expected the prices to remain unchanged from February’s figure at 0.5%. This week, the events to watch out for are the US core CPI and US retail sales data scheduled for Tuesday and Thursday respectively.
Besides, Dow Jones will be reacting to the earnings season that is set to commence this week. JPMorgan, Goldman Sachs, Wells Fargo, Bank of America, and Delta Air Lines are some of the companies scheduled to release their Q1’21 earnings report in the course of the week.
Dow Jones Technical Outlook
Dow Jones has hit a new record-high at 33,800.6 after rising by 0.89%. On a 4-hour chart, the index remains above the 14 and 28-day exponential moving averages. Besides, it has been between the upper and middle Bollinger bands since late-March.
As the earnings season begins, the index is likely to move past the upper Bollinger band to hit the psychological level of 34,000. If the bulls manage to push it past that point, the next target will be 35,000. However, after crossing the 34,000 mark, it will probably pull back slightly before moving higher to 35,000.
On the flip side, Dow Jones could fail to face enough buying pressure to move it to 34,000. If that happens, it will pull back close to 33,000 before rebounding.
Dow Jones Chart
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