Dow Jones Index Technical Analysis | Dow Jones Index Trading: 2020-07-02 | IFCM
IFC Markets Online CFD Broker

Dow Jones Index Technical Analysis - Dow Jones Index Trading: 2020-07-02

Dow Jones Index Technical Analysis Summary

Accelerometer arrow
Strong SellSellNeutralBuyStrong Buy

Above 26013.4

Buy Stop

Below 25512.3

Stop Loss

Ara Zohrabian
Senior Analytical Expert
Articles 2452
IndicatorSignal
RSI Neutral
MACD Neutral
Donchian Channel Neutral
MA(200) Buy
Fractals Buy
Parabolic SAR Buy

Dow Jones Index Chart Analysis

Dow Jones Index Chart Analysis

Dow Jones Index Technical Analysis

On the 4-hour timeframe DJI: H4 has risen above the 200-period moving average MA(200), which is rising. We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 26013.4. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 25512.3. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (25512.3) without reaching the order (26013.4), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis of Indices - Dow Jones Index

Economic data from US are better lately than anticipated. Will the DJI rebound continue?

US economic data in the last couple of weeks were better than expected on balance. US Institute for Supply Management (ISM) report yesterday showed its manufacturing index climbed to 52.6 from 43.1 in May and from an 11-year low of 41.5 in April, when a reading of 49.5 was forecast. Any reading above 50 represents an expansion in economic activity. A day before Standard & Poor's reported that the Case-Shiller house price index of selling price of single-family homes in 20 metropolitan areas rose 4% on an annual basis in April when a decline to 3.8% was expected after 3.9% increase in March. And while the ISM-Chicago reported Chicago area business activity contraction continued at above-expected rate in June the contraction slowed compared with May. At the same time the Automatic Data Processing Inc. reported private sector employment added 2.37 million jobs in June, and May’s statistics was revised: instead of a loss of 2.76 million jobs the US added 3.06 million jobs! And on the monetary front Federal Reserve chair Powell pledged on Tuesday to keep doing whatever it takes to support the US economy. Better than expected economic data are bullish for DJI. On the other hand Labor Department employment report will be released today and official data painting a picture weaker than the one ADP reported is an immediate downside risk for DJI.

IFCM Trading Academy - New era in Forex education
Pass Your Course:
  • Get Certificate
trading academy

The best trading conditions and high-level services for our clients

We are ready to assist you on any issue 24 hours a day.

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger