Positivism brewing on economic reopening hope
The market turn positive at the weekend after the Fed Jerome Powell speak positively that U.S will recover after COVID-19 but might not fully recover until the COVID vaccine completed. He also believed the current economic downturn will not resemble the 1930s great depression. However, U.S unemployment could reach as high as 25%.
Today, the global stock market traded at the positive side after the Fed Jerome Powell interview. Traders will expect further upside when the market open today.
Asian & European Stock market
The Asian stock market mostly higher today. Japan stock market up 96.26 points (+0.48%) to 20,133.73, China stock market up 6.96 points (+0.24%) to 2,875.42 and Australia ASX 200 up 55.70 points (+1.03%) to 5,460.50. The European stock market also on the path higher. DAX Germany up 2.69%, FTSE UK up 2.33%, Euro STOXX 600 up 2.04%
Dow Jones Industrial Average (INDU)
DJIA bounced from the daily SMA 50 and maintained the level inside 22,500 – 24,250 area. No change to the outlook of the index yet. Today, DJIA futures pointed upward more than 300 points which indicate strong bullish movement. We expect the index to continue moving inside the range for now until further economic data release shows the impact of coronavirus after the reopening of businesses.
Jack in the Box Inc (JACK)
JACK share prices are in a bullish correction and have reached $70.00 handle where it has trouble moving further upside. Currently, the share prices making upward attempts and will retest $70.00 also the daily SMA 200. Traders could prepare to enter short positions when there is a major bearish reaction from the resistance level.
Restaurant Brands (QSR)
QSR share prices steadily moving upside and currently tested the daily SMA 100. The share prices might continue its upward movement and reach the daily SMA 200 or the $60.00 handle. Similar to the situation in JACK, traders could prepare to enter short positions when there are major bearish reactions from the resistances level.