U.S stock market staged comeback

Last week has been a big volatility week when the index turned lower following the tariff by Trump administration. However, at the end of the week, major indices managed to stage a comeback and closed the week positive. It seems the upward movement could continue this week and traders will prepare for bullish continuation.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made a bullish reversal on Friday’s trading session. The index turned higher and closed the week on the positive side. If the bullish situation continues, then we will have a solid bounce from the daily SMA 100 and the index is set to continue the bullish trend to target a new record high. On the other hand, if the index turn lower again, then the daily SMA 200 will become the bearish target to watch.

Dropbox, Inc (DBX)

DBX share prices dropped sharply after the latest earnings report and reached the daily SMA 200. The share prices have not reversed the bearish pressure and might keep testing the averages. Traders will wait until the bearish pressure receded and there are bullish reactions. When the share prices could bounce upward with strong momentum, traders could enter long positions.