New Month and New Quarter
U.S stock market ready to kick-off the second quarter this year. The first quarter has been rosy for stock indices as the market digest FOMC meeting result and President Trump new policies. The fabulous quarter started by a break above 20,000 handles in Dow Jones Industrial Averages and continue upward to 21,000 barriers. The market might continue its upward movement in the second quarter.
On Eurozone, the market is also showing the good sign of recovery, though accompanied by jitter from UK Brexit and ongoing election in Eurozone countries. Today Asian session ended on positive notes, followed by the gain in the European session. U.S stock market expected to open on the positive side and continue upward.
Technical Analysis
Dow Jones Industrial Averages (INDU)
The bull gives way for the index to its downward movement and found support at daily SMA 50. The index will test 20,800 resistance, and if it reverses at the resistance, traders might see 20,000 challenged soon.
Walt Disney Co (DIS)
Higher movement in DIS shares brought the price up from $90.32 to as high as $113.71. This performance will encounter the long-term trendline resistance soon. If the price form bearish pattern, it might reverse sharply from the current level. $111.50 is the first target to look for a short position.
Other Watchlist
Q – back near the top of triangle consolidation, might break upside or bounce lower.
TJX – bearish engulfing pattern from the $80 resistance. Might indicate reversal downside.
LLL – the price is near the daily SMA 50.
AET – the price building base from its daily SMA 50 and 100. Might bounce higher.