US Stock Market Technical Analysis | April 25, 2022

DJIA futures tumble 200 points as the market closes at the end of April

The market switches the gear from bullish to bearish as we are getting near the end of the month. At the current time, DJIA futures are lower by more than 200 points and might continue to add to the losses. Traders and investors getting worried about the covid situation in China. The strict lockdown was enacted and death tolls continue to rise.

Before the covid situation, we have experienced major supply chain disruption and now the situation doubled by China covid cases. Under the current situation, it is better to stay cautious and stay in safe-haven assets or defensive stocks.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index finally stage a major bearish movement last week with the index making a lower low. The index also got rejected from the daily SMA 200 and no higher high was printed on the chart. We continue lean-to a bearish scenario on the index and expect the bearish trend will continue to target a new swing low. Under the current situation, traders might want to stay cautious when taking long positions and enter slowly near major support levels.

ConocoPhillips (COP)

COP share prices are in a bullish trend following the surprise in oil prices. The price of oil is currently undergoing a bearish correction and the share prices follow the oil prices direction. If the bearish correction continues then it will target the daily SMA 100 and the trendline. Traders could prepare for long positions inside the area when the test happen.

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