PHILIFED POWERS DJ 30, SOFTER US-CHINA TARIFFS SUPPORTIVE
Dow Jones 30 is currently trading at 26686- higher by 0.80% as compared to the last closing. The 30-stock index jumped to its first record high since January. The index has been gaining momentum since the last 2 trading sessions. Further back, it has closed in the positive, in 5 out of the past 8 trading sessions.
The index rose buoyed by gains in Apple and lessening trade fears. The tariffs imposed by the U.S. and China were seen as lower than previously feared, helping lift sentiment on Wall Street.
Among the top gainers in the DJ 30, Apple rose 2.63%, Boeing added 4.5% and Caterpillar rose 1.5% at the time of writing. DowDuPoint advanced 2.2% at the time of writing.
On the data front, the Philadelphia Fed Manufacturing Index reading released earlier on Thursday came in at 22.9. This was above expectations. The consensus was for a reading of 17 with the reading in August being at 11.9. Initial Jobless claims also released on Thursday were 201K- below the expectations of 210K.
On the technical front, the RSI is currently at 78% 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 below to the upside at 79% and suggests that markets may move in the upward direction.
So, overall the market setup seems to be positive. Trades can be initiated with tight Stop Loss and Take Profit targets as quick short-term trade.
Trade Suggestion-Limit Buy at 26630. Take Profit at 26740. Stop Loss at 26575.