US Stock market Technical Analysis May 28, 2020

Rally to continue as reopening assessed

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The stock market ready for another leg higher as DJIA futures up 175 points at the current time. Traders and investors are mostly positive on the reopening of the U.S economy. At least the stock market will continue higher for now. We will see if the economy could hold on or not after assessing the impact of reopening in a few weeks.

If the coronavirus infection skyrocket then the market might turn negative again.

Asian & European Stock market

The Asian stock market mostly higher today. Japan stock market up 497.08 points (+2.32%) to 21,916.31, China stock market up 9.42 points (+0.33%) to 2,846.22 and Australia ASX 200 up 76.10 points (+1.32%) to 5,851.10. The European stock market also on the path higher. DAX Germany up 0.63%, FTSE UK up 1.09%, Euro STOXX 600 up 1.24%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA crossed above 24,250 and distanced itself from the 22,500 – 24,250 area. The index set to target 26,000 and the daily SMA 200. Traders will continue to observe the index reaction near the resistances level. We might have a recovery at the current time but it could turn negative anytime after economic data releases which show the damage of coronavirus to the economy.

Activision Blizzard Inc (ATVI)

ATVI share prices on the bullish track even though it experienced pullback from the top. Yesterday, the share prices formed a bullish pin bar pattern. It might be the indication for further bullish movement. However, traders might want to wait until the share prices pullback deeper toward the daily SMA 100 or SMA 200 before placing long positions.

General Dynamics Corp (GD)

Similar to the DJIA movement, GD share prices continue its bullish correction. It is near the daily SMA 100 and will test it soon. If GD continues higher then traders will expect the share prices will reach the daily SMA 200 or the level near $170.00.

Short positions could be considered near the resistances level if there are major bearish reactions.

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