DJ 30 RISES ON HOPES OF EASING US-CHINA TENSIONS
DJ 30 futures are currently trading at 24630- higher by 1.22% as compared to the previous close. The contract has been closing in positive territory since the last two trading sessions. Further back, the benchmark futures closed in the green in 3 out of the last 5 trading sessions.
US Stocks opened higher today as investors reacted to news related to the ongoing trade war between the U.S. and China.
The index futures extended gains after the Wall Street Journal reported that China is working to increase access to foreign companies, a move aimed at easing U.S-China trade tensions. The report said that the plan would replace the country’s Made in China 2025 plan, a framework aimed at making China, a leader in high-tech industries.
In the cash markets, the DJIA was up 338 points at the time of writing led by gains in Caterpillar. Among top gainers in the index, Caterpillar and Boeing were up 2.3% and 1.4% during early deals.
The US President told Reuters on Tuesday that he would intervene in the Justice Department’s case against Chinese telecom giant Huawei’s CFO if it would help U.S.-Sino trade talks. President Trump further said that talks between Washington and Beijing were ongoing and confirmed he would not raise tariffs on Chinese imports until he was sure about a comprehensive trade agreement.
Sentiment also turned positive after reports emerged in the US overnight (on Tuesday) that China was considering cutting import tariffs on American-made cars to 15% from the current 40%.
Shares of major banks were traded higher on Thursday. Index-member J.P. Morgan Chase was up 0.55% at the time of writing.
Other top gainers in the Dow Jones include UnitedHealth (up 1.8%), Visa (up 2%), and Chevron (up 0.89%) at the time of writing.
On the economic front, the Core CPI (MoM) for November released earlier today came in at 0.2%. The Core CPI change was in line with market expectations. U.S. consumer prices were held back by a sharp decline in the price of gasoline, but underlying inflation pressures remained firm amid rising rents and healthcare costs.
On the technical front, the RSI is currently at 46.11% and suggests that the market can move in the upward direction. The current price is above the MA5 (24462). The current price is below the middle line of the Bollinger Bands but 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 24600, Take Profit At 24730 Stop Loss At 24530