Stock market trading upward led by Chipmaker rise

The bullish movement of the stock market continues today as NVIDIA stock prices rise toward a record high. The market looks optimistic that the rally will continue especially nearing President Trump’s inauguration. Not much change to the long-term bullish outlook, however, traders could prepare for further downside and opportunity to add long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index currently supported by the daily SMA 100 and show bullish reactions. However, no major upward movement after the bounce which could resulted in bearish continuation. If the index continue the bearish movement then traders will wait near the daily SMA 200 for bullish reactions. When the share prices could bounce with strong momentum then it is the time to turn bullish again.

Fastenal Company (FAST)

FAST share prices constantly moving lower since the $84.50 top. There is no major bullish reactions yet even though the share prices has reached both daily SMA 100 & 200. If a bounce reaction happens then the share prices need to climb above daily SMA 100 with strong bullish momentum. Otherwise, the bearish trend might continue and breakout below daily SMA 200 eventually happen.