DOW JONES RISES ABOVE MA5 ON TRADE OPTIMISM

DJ 30 futures are currently trading at 26407-higher by 0.18% 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 added about 365 points at the time of writing.

U.S. equities advanced today as Washington and Beijing showed a willingness to end their long-running trade war.

According to market sources, the Chinese Foreign Ministry said today that U.S. and Chinese officials are maintaining effective communication as the two economic powerhouses try to agree to a trade deal.

The Chinese commerce ministry said on Thursday that it opposed increasing trade tensions, hinting that China’s authorities will not retaliate against the latest round of U.S. tariffs.

The U.S. President also said in an interview on the previous day that trade talks are scheduled for Thursday at a different level. President Trump, however, did not provide further details.

Bank shares rose on Friday. Goldman Sachs and JP Morgan added 0.43% and 0.70% respectively at the time of writing.

Top gainers in the Dow Jones include Walgreens Boots Alliance (up 1.19%), Caterpillar (up 0.93%), and UnitedHealth Group (up 1.40%) at the time of writing.

The broad-market index has lost about 2% in this month entering today’s session and set for their first losing month since May. For the week, the 30-stock index is up about 3.1% and set for its largest weekly gain since June.

On the economic front, Personal Spending (MoM) for July released earlier today came in at 0.6%. The index change was above the consensus estimates of 0.5%. In addition, Michigan Consumer Sentiment for August also released earlier today came in at 89.8. The index reading was below the market expectation of 92.1.

On the technical front, the RSI is currently at 53.68% and suggests that the market can continue trading sideways. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 46% and suggests that the market can move in the upward 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 26375, Take Profit At 26475 Stop Loss At 26325

 

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