DJ 30 RISES ABOVE MA20 ON NEWS OF RECEDING U.S.-CHINA TRADE TENSIONS
DJ 30 futures are currently trading at 25982- higher by 0.42% as compared to the previous close. The contract closed in the positive territory in the last trading session also.
In the Cash Markets, the DJIA rose 62 points as stocks of Boeing and Nike outperformed. U.S. equities opened higher today on news that trade negotiations between Beijing and Washington may conclude as soon as two weeks.
U.S. officials are getting a final trade deal ready for President Donald Trump and China’s President Xi Jinping to sign around mid-March, according to Bloomberg News report on Thursday. The report came after White House economic advisor Larry Kudlow said that the two countries were making “fantastic” progress in their negotiations.
Also, top trade negotiator Robert Lighthizer said on Wednesday that tariffs on $200 billion in Chinese goods set to increase to $25% from 10% at 12:01 a.m. on 2nd March, wouldn’t go into effect.
Other top gainers in the Dow Jones include American Express (up 0.91%), Goldman Sachs (up 1.2%), and UnitedHealth Group (up 1.68%) at the time of writing.
The benchmark is up more than 11% for the year. The broad-market index rallied 3.7% in February.
On the economic front, the ISM Manufacturing PMI for February released earlier today came in at 54.2. The index reading was below the market expectation of 55.5. The official data also showed that manufacturing activity expanded at a slower-than-expected pace last month and reached its lowest level in more than two years.
In addition, Core PCE Price Index (MoM) for December also out today came in at 0.2%. The index change was in line with the market expectation.
On the technical front, the RSI is currently at 64.33% and suggests that the market can move in the upward direction. The current price is above the MA20. The current price is above the middle line of the Bollinger Bands and is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 25960, Take Profit At 26050 Stop Loss At 25910