Despite strong NFP data, Down Jones slipped lower in the last trading week. However, the addition of 266k new jobs in the U.S economy is reflected by a steady gain in DJI index. Dow Jones started its bullish rally after forming the bullish pin bar at $27391.86.However, the DJI index rally is most likely to be capped by the nearest resistance at $28188.29.A daily closing above the high of 27th November at $28188.29 might push the Dow Jones towards the 28500.mark.Traders are cautiously waiting for Trump’s call regarding the suspension on China tariffs. If Trump intensifies the U.S China Trade war crisis on December 15, Dow Jones might slip lower.
On the downside, the first initial bearish target for the Dow Index is at $27380.64.A daily closing of the price below that level might push the Dow Jones towards the next support at $26382.30.However, the bears might have a tough time breaking the support at $26382.20. But a break below that level might target the low of $25764.95.But such an extensive downfall requires a strong fundamental catalyst. Considering the upcoming news, the traders will be waiting for the FOMC meeting minutes. Traders are advised to stay cautious since we might experience small correction in Dow Jones price before another rally.Download our latest quarterly market outlookfor our longer-term trade ideas.
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