U.S stock climb on positive U.S-China trade talk

Traders are optimistic on the stock market after President Trump said the trade talk with China were going well. Aside from the trade talk, traders will focus on the Fed FOMC meeting this week. Bullish sentiment in the market might reverse sharply after the event, or it could turn more bullish. Waiting for confirmation from the Fed or the market reactions might be the safer idea for now.

Dow Jones Industrial Average (INDU)

DJIA index stick near the trend line and maintain the bullish situation. No change to the situation yet as the index continue to stick near the level. Without any change in situation, traders will expect the bullish trend to continue. However, if there is a bearish breakout, then the orange trend line and the daily SMA 200 could become the bearish target to watch.

Eli Lily and Company (LLY)

LLY share prices has been trading below the daily SMA 200 and might resume the bearish trend. The current upward movement stalled between the 61.8% – 78.6% Fibonacci Retracement also the daily SMA 200. If it falls with strong bearish momentum, then the $700.00 level will become the major level to watch. A strong breakout below the level will confirm a bearish continuation. On the lower side, the $570.35 level will become a bearish target to watch.