U.S stock advance on stimulus hope

On Thursday morning, President Trump tweeted that the administration and Democrat start to have productive talks on stimulus. The news boosted the market and brought DJIA higher yesterday. Today, U.S stock futures are boosted by further positive news.

Will we have a stimulus deal soon? At the current time, traders might want to stay careful when taking major positions in the stock market.

Asian & European Stock market

The Asian stock market mixed today. Japan stock market down 27.38 points (-0.12%) to 23,619.69, China stock up 54.02 points (+1.68%) to 3,272.08 and Australia ASX 200 up 0.20 points (+0.00%) to 6,102.20. European stock market mostly higher. DAX Germany up 0.18%, UK FTSE up 0.71%, and Euro Stoxx600 up 0.40%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA maintains its bullish pressure above the 28,000 and targeting the 29,000 handles. The index might continue its bullish movement today as the index futures up more than 100 points. At the current time, the market seems optimistic that a stimulus deal will be reached soon. It is better to stick with long positions for now in equity until there is a major bearish reversal.

Slack Technologies Inc (WORK)

WORK share prices moving upward above the daily SMA 200 and currently testing the daily SMA 100 and $30.00 horizontal level. The share prices might consolidate between the daily SMA 100 & 200 while waiting for a breakout. On the bigger outlook, WORK share prices also moving inside a triangle pattern. Traders will observe all of the current ranges and determine the next direction of WORK after the breakout.

We favor a bullish breakout and suggest long positions near the daily SMA 200 and bottom of the triangle.