Current trend

The Dow Jones Index is correcting in a local uptrend at 41487.0 amid expectations of a change in the monetary rate in the US.

There are just over 15 days left until the next meeting of the Us Federal Reserve, and experts are trying to predict the next steps of the financial authorities, while macroeconomic reports that will be published in these two weeks can significantly change these estimates. Thus, according to the Chicago Mercantile Exchange (CME Group) FedWatch Tool, the probability of reducing the cost of borrowing with a minimum step of 25 basis points is now 69.0%, and by 50 basis points is 31.0%. At the end of the week, data on the Nonfarm Payrolls will be presented, which can become the main determining factor for adjusting monetary parameters, and the better the situation on the labor market, the higher the prospects for a double reduction in the interest rate this year.

Meanwhile, the uptrend continues in the bond market: the yield on 10-year debt securities increased to 3.915% from 3.888%, on 20-year ones — to 4.295% from 4.268%, and on 30-year ones — to 4.200% from 4.170%.

The leaders of growth in the index are Intel Corp. ( 9.49%), Amazon.com Inc. ( 3.71%), IBM Corp. ( 1.62%).

Among the leaders of decline are Salesforce Inc. (˗1.60%), American Express Company (˗0.46%), Apple Inc. (˗0.34%).

Support and resistance

On the D1 chart, the index quotes continue their corrective dynamics, again approaching the resistance line of the ascending channel with boundaries of 41800.0–39200.0.

Technical indicators gradually strengthen the buy signal: the EMA fluctuation range of the Alligator indicator is expanding, and the AO histogram is forming new ascending bars, being above the transition level.

Support levels: 41800.0, 43170.0.

Resistance levels: 41100.0, 40000.0.

Trading tips

If the asset continues to grow, buy positions will be relevant, which can be opened after overcoming the resistance level of 41800.0 with a target of 43170.0 and a stop-loss of 41400.0. Implementation period: 7 days and more.

In case of a reversal and continued decline of the asset, as well as consolidation of the price below the support level of 41100.0, sell positions of 40000.0 can be opened. Stop loss – 41600.0.