U.S stock futures higher on China’s Evergrande news

The stock market is set to higher today following the bullish sentiment in the global stock market after Evergrande reported to pay key interest payments and avoid default. On the tech ground, Intel share prices were set to open 10% lower as the company projected a lower profit margin due to the current chip crises and future investment. Snap Inc dived 20% after the company warned of slowing growth due to changes in Apple’s iOs privacy rules.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues to maintain its position near the all-time high. The index futures are currently higher by 73 points which indicates a higher opening. Under the current situation, traders will continue to maintain long positions and avoid short positions in stocks. If the index makes a bearish correction then the daily SMA 50 & 100 are the levels to watch for a bounce.

VALE S.A Adr (VALE)

VALE share prices are in a downtrend correction since the $23.18 high. There is no major bullish reaction yet and the share prices continue printing lower ow on the chart. We could see it is currently trading near the weekly SMA 200 and getting near the horizontal red line. Traders could use the $12.00 level and the daily SMA 200 as levels to enter long positions.

If a bullish bounce happens from the current level then we might see the start of a new bullish leg.