U.S stock market building bullish pressure

The stock market are trading upward, fueled by NVDA gain. Traders seems optimistic before the update on trade situation between U.S-China. June might be a heavy sideways month as there won’t be major update on the tariff war. Interest-rate might also stay the same as the Fed waiting for more data confirmation and tariff war impact. No major earnings release too. We might see a sideways situation with slight bearish movement. It means good chance for traders to add long positions at a lower level.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index moving upward and testing the daily SMA 200. No breakout and no confirmation yet on the next long-term direction. As mentioned before, the index might continue trading sideways for medium-term as traders awaiting the resolution on tariff war, also the Fed decision on interest-rate. We still expect the index to turn lower and test support level before continuing the bullish trend. A test on 40,000 might be the ideal situation to happen before bullish continuation.

Kimberley Clark Corporation (KMB)

KMB share prices return above the daily SMA 200 and looks forming a triangle consolidation. The share prices is currently trading lower and is set to test the trend line and daily SMA 200. Traders will observe the reaction near both support levels. If there is strong bounce, then traders will expect upward movement to test the upper trend line. When breakout from the triangle pattern happened, traders will get confirmation on the next direction.

At the current time, it is the time to wait for support level test to add long positions.