DOW JONES INDEX PRICE NEWS AND TECHNICAL CHARTS ANALYSIS – 19 APRIL 2023
18 Apr 2023
As a result of Bank of America’s earnings, the Dow futures increased by 135 points
Investors are encouraged by Bank of America’s strong profits, which continue the trend of American big banks exceeding expectations, and U.S. stocks are expected to rise on Tuesday.
The Dow Futures increased 135 points or 0.4%. The moves came after the major averages gained to kick off a stacked week of corporate earnings.
As the banking sector continued to report quarterly earnings, the major indices ended the day higher. Charles Schwab, which beat expectations but reported an 11% decline in deposits from the fourth quarter, highlighted the trend of depositors shifting their assets to the biggest, ostensibly more secure banks.
Before the bell, Bank of America increased by roughly 3% after beating forecasts for the top and bottom lines for the first quarter as rates increased. The Dow member Johnson & Johnson rose roughly 2% in premarket trade because of the company’s results exceeding expectations and raising its 2023 projection. Netflix comments following the market’s closure.
The industry has been shaken by the failure of two banks last month, so traders are closely watching financials even if profit results have so far shown resilience. They want to know how businesses are faring in an environment of persistent inflation and rising interest rates.
Traders are keeping an eye on the most recent house starts and building permits data on the economic front. According to consensus projections from Dow Jones, housing starts for March will drop 3.4% to 1.40 million units.
According to experts surveyed by Dow Jones, the March building permits data will decline 4.9% to 1.45 million units.
DOW JONES TECHNICAL ANALYSIS DAILY CHART:
Dow Jones is currently trading in up channel.
Dow Jones is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting no trend.
Immediate resistance is at 34209.73 & its immediate support level is 34106.49
HOW TO TRADE DOW JONES IN THIS WEEK
The Dow Jones is rising in a channel and has broken its previous day’s high. It is currently trading near a key resistance level, and if it can break through that level, more upside is possible.