Dow Jones outlook: Dow rises on improved risk mode

Slobodan Drvenica Windsor Brokers

Dow Jones

The Dow Jones Index continues to benefit from fresh risk appetite as traders feel more comfortable on easing fears after collapse of two US banks.

The price rose to three-week high in European trading on Thursday, in extension of 0.85% advance on Wednesday, marking 50% retracement of larger 34547/31529 fall.

Near-term action is underpinned by 10/200DMA golden cross and formation of 10/20DMA bull-cross and rising bullish momentum on daily chart.

Fresh advance needs close above cracked pivots at 32991/33038 (former top of Mar 22 / 50% retracement) to boost bullish signals and keep focus at 33289/33394 targets (55DMA / Fibo 61.8% of 34547/31529).

Investors await release of US PCE data on Friday, for more evidence on inflation, which will return to Fed’s focus after immediate threats from the recent bank turmoil eased.

Res: 32990; 33290; 33394; 33475.
Sup: 32991; 32860; 32757; 32572.

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Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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