DJ 30 TARGETING 25K, MARKETS AWAITING FED CHIEF
DJ 30 futures are currently trading at 24866- higher by 0.37% as compared to the previous close. The contract has been closing in the positive territory since the last three trading sessions.
In the cash markets, the DJIA rose 120 points at the time of writing, led by gains in Boeing.
US stocks rose today as investors awaited a key speech from Fed Chief, while hope that a U.S.-China trade truce could come lifted sentiment on Wall Street. Federal Reserve Chairman Powell is scheduled to speak at the Economic Club of New York (12 pm ET). During the event, the chairman is slated to talk about the Fed’s framework for monitoring financial stability. Investors are eagerly awaiting the speech as shares have fallen in part because of concerns the central bank may be tightening monetary policy too quickly.
Index-member Boeing rose about 2% as trade worries eased. The stock also rose after Indonesian investigators said they are looking at a possible maintenance issue that could have led to the Lion Air crash last month.
Other top gainers in the Dow Jones include UnitedHealth (up 2.5%), Visa (up 1.75%), Microsoft (up 1.27%) Caterpillar (up 0.57%), and Chevron (up 0.58%) at the time of writing.
On the economic front, US GDP (2nd estimate) (QoQ) for the third quarter released earlier today came in at 3.5%. The GDP growth was in line with market expectations. In addition, New Home Sales for October also released earlier today came in at 544K. Sales numbers were below market expectations of 583K.
On the technical front, the RSI is currently at 46.5% and suggests that the market can move in the upward direction. The current price is above the MA5. 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 24850, Take Profit At 25000 Stop Loss At 24770