Bullish recovery after the tech rout

U.S stock market traded lower last week as the technology sector made pullback. DJIA index fell from 29,133.31 to close at 27,665.64. This week, the market rejoices on the resumption of phase 3 trials of AstraZeneca’s coronavirus vaccine. In the previous week, the Vaccine trial in the UK halted after “Potentially unexplained illness” in one of the participants.

Aside from the vaccine news, Nvidia purchases Arm Holdings for $40 billion from Japan’s Softbank create positive sentiment in the market. Despite the positive news at the beginning of the week, traders might want to be careful as tech rout might continue this week.

Asian & European Stock market

The Asian stock market marching to the upside. Japan stock market up 152.81 points (+0.65%) to 23,559.30, China stock market up 18.47 points (+0.57%) to 3,278.81 and Australia ASX 200 up 40.10 points (+0.68%) to 5,899.50. The European stock also on the path higher. DAX Germany up 0.48%, FTSE UK up 0.25%, Euro STOXX 600 up 0.38%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index settled lower below 28,000 but maintained the positions above 27,000. The index futures higher more than 300 points at the current time, suggesting a strong bullish opening. If the index could move higher and return inside the 28,000 – 29,000 areas then the bullish trend is expected to continue.

On the upside, traders will expect DJIA to target the all-time high.

Kimberley Clark Corp (KMB)

The bearish correction of KMB share prices has moved below the daily SMA 50. Traders could see two horizontal support lines where the share prices expected to bounce from. The level around $142.50 and $145.00 will become the focus if the share prices could reach it.