Stock futures pointed upward before the busy earnings week

DJIA futures are currently up 109 points which indicates further strength this week before the earnings release. Last week, the DJIA index managed to reverse the bearish pressure and close near the weekly opening level after major bearish pressure. It seems the bullish pressure will continue this week ahead of next week’s FOMC meeting.

Traders will stay cautious as the market might play the rally before the news and start another bearish leg after the Fed announcement.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made a bullish reversal and start to trade higher. Despite the situation, the index has not left the horizontal area shown on the daily chart. If the index moves upward and gets rejected from the top of the range also the daily SMA 50 then the ranging movement is set to continue. We think this week’s ECB and next week’s FOMC meeting will trigger a breakout from the range.

Kraft Heinz Co (KHC)

KHC share prices broke below the daily SMA 200 and bounced from the $35.00 level. The share prices then managed to return above the daily SMA 200. At the current time, KHC is ranging between the daily SMA 100 & 200. Traders will wait for a breakout from the range to confirm the next direction.

If the share prices break out lower then it will target the previous support area.