DOW JONES RISES ABOVE MA5 ON TRADE OPTIMISM
DJ 30 futures are currently trading at 27233-higher by 0.23% as compared to the previous close. The contract, however, closed in the negative territory in the last trading session also.
In the Cash Markets, the DJIA added about 54 points at the time of writing. The 30-stock index was on track for its first eight-day winning streak in more than a year, amid improving sentiment around Sino-U.S. trade relations.
The benchmark index was also looking to surpass an intraday record high of 27,398.68. Through Thursday’s close, the 30-stock index was around 0.8% below that level.
Trade Bellwethers Boeing and Caterpillar gained 1.15% and 1.27% respectively at the time of writing. Apple dropped 2.31% after investment bank Goldman Sachs lowered its 12-month price target on the tech giant’s stocks to $165 per share from $187 a share.
According to market sources, China will exempt U.S agricultural products, including pork and soybeans, from additional tariffs.
U.S. equities on Thursday surged to their highs of the day after news that Washington is considering over an interim trade deal with Beijing. According to market sources, the U.S. President’ advisors were considering an interim deal with China that would delay tariffs.
The U.S. President said on Wednesday that increased tariffs on 250 billion dollars’ worth of Chinese goods have now been delayed by two weeks at the request of Chinese vice Premier as a gesture of good will. Officials from both the countries are expected to hold trade talks in Washington at the beginning of the October.
Banks followed U.S. Treasury yields higher after data showed U.S. retail sales gained 0.4% in the last month. Goldman Sachs and JP Morgan added 0.80% and 1.99% respectively at the time of writing.
On the economic front, Retail Sales (MoM) for August released earlier today came in at 0.4%. The index change was above the consensus estimates of 0.2%. In addition, the preliminary reading of Michigan Consumer Sentiment for September also released earlier today came in at 92.0. The index reading was above the market expectation of 90.9.
On the technical front, the RSI is currently at 66.08% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from above to the downside at around 96% and suggests that the market can move in the downward direction.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 27220, Take Profit At 27320 Stop Loss At 27170