February 14, 2019 | SQUARED DIRECT – US indices rose on Thursday as a backdrop of supporting fundamentals buoyed market sentiment. CPI data showed inflation in the US remained subdued supporting a dovish Fed that may have been overestimated as Fed members noted that a rate hike may still be possible this year.
While an averted government shutdown provides relief, Sino-US trade negotiations officially begin today and persist as the main driver of price action and optimism in global markets. Investors will be drawn to trade-related headlines to sustain positive momentum in the DOW index.
DOW Jones Technical Analysis
The Dow index rose 0.48% to close at a new high of 25543. As bullish momentum halts, Price should range below the resistance at 25600 and above the support at 25440 before extending the rally.
Taking out resistance at 25600 will enable the index to resume its uptrend along the upper band, while a sustained move above 25380 will keep bullish sentiment intact.
Support: 25440 / 25380
Resistance: 25600 / 25760
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