DJIA set to drop after seven bullish days

The bullish streak of the DJIA index might reach its end as DJIA futures traded lower more than 300 points before the market open. It is reasonable and normal to happen and traders might prepare for further bullish movement when the bearish correction ended.

We expect the market will continue bullish for medium-term as economy reopening observed. June data will give better outlook on the next medium-long-term trend.

Asian & European Stock market

The Asian stock market mostly higher. Japan stock market down 87.07 points (-0.38%) to 23,091.03, China stock market up 18.34 points (+0.62%) to 2,956.11 and Australia ASX 200 up 146.20 points (+2.44%) to 6,144.90. The European stock market under pressure. DAX Germany down 1.96%, FTSE UK down 1.77%, Euro STOXX 600 down 1.40%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA extended its gain above 27,000 yesterday and set to continue further upward as the economy on recovery mode. However, the index might trade lower in today’s trading session as DJIA futures down more than 300 points. It is normal to happen after several days of strong rally in the index.

Traders will observe the 27,000 handles when the index testing the level.

Ralph Lauren Corp (RL)

RL share prices soon will reach the daily SMA 200 and the psychological level at $100.00. When the share prices reach the resistance level then traders could consider entering short positions on rejection. At the current time, it seems the share prices might move lower and test the level around $80 – $82.50. We might see a bounce from the area where traders could look for long positions.