Stock futures trade higher on possible inflation peaking

The DJIA futures currently trading up 112 points after the release of U.S CPI data. CPI comes out at 1.2%, in line with expectation. Core CPI comes out at 0.3% vs. 0.5% expectation. Traders seem betting on inflation peaking based on the core CPI reading. Moreover, the earnings season will start this week and give traders more clues on how recovery playout.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index gained bearish momentum yesterday as the index fell and close below the daily SMA 50. There is bullish sentiment before the market open which might bring the index back above the averages. Traders will observe the index reaction at the daily SMA 50. If a major bearish rejection happens then the index is set to continue the bearish trend.

Air Products & Chemicals Inc (APD)

APD share prices are in a bullish recovery movement after the prolonged bearish trend. The share price upward movement could span toward the daily SMA 200 but it is not mandatory. Traders could place short positions near the current level with the expectation the bearish movement could reach $230.00 or the previous swing low of $216.24.

If the share prices bottom out near the previous swing low then a double bottom pattern will be formed. Traders could also apply a bullish strategy and scale in long positions between $210 – $230.