US Stock Market Technical Analysis | August 01, 2022

U.S futures slightly lower after best month since 2020

DJIA futures currently trading down 156 points ready to start a downward movement after a strong month. More companies will report earnings results this week. Aside from the earnings data, traders will observe job data at the end of the week. Traders and economists seem to turn optimistic that the U.S economy is not in recession despite the two consecutive negative GDPs.

There is a change in the recession terminology by Biden’s administration which says three consecutive negative GDPs are recession confirmation. Will the change in the terminology change the market direction from bearish to bullish?

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index closed inside the horizontal range and above the daily SMA 100. This week might become the moment to decide where the index will move next. If a significant bearish rejection happens from the area then we might see a bearish continuation to target the level below 30,000. June’s high might become the key to the next direction.

Shopify Inc (SHOP)

SHOP share prices are located at an interesting place right now. We could see the previous range before a bull run started. At the current time, traders could use the area between $30.00 – $40.00 as an accumulation range for long-term investing. When economic recovery starts, we might see a new rally in SHOP share prices.

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