Sentiment on the North American opening bell is decently positive but Buyers still have some work to do to undo some of the yesterday's selling – They are still starting to get some traction.
There is no major US Data release in today's session, leaving normal trading flows the role to guide the price action. Watch how the weekly candle closes.
The earnings season is almost done for most of the Major companies, with the only major miss released yesterday for Eli Lilly which saw its biggest daily drop of 14% since 25 years on a slow down for the company's obesity pill offer, but is still seeing some dip-buying with today's daily open.
Markets are still waiting for more Federal Reserve's speak after yesterday's comments from Atlanta FED's Bostic mentioning that the "risks to the job markets have increased, but it is too soon to commit to interest rate cuts for the next meeting" which took some of the pricing for September out.
The 25 bps cut is still largely priced in.
FED's Musalem is currently appearing in a fireside chat on Credit in Mississippi, it will be interesting to see what he has to say on that.
Elsewhere in geopolitics, US and Russia are meeting to discuss a concession in Eastern Europe to try to reach a ceasefire deal. Both the EU and Ukraine have been left out of the talks so let's see if this helps the situation, with the current talks in a limbo.
In the meantime, let's take a look at Dow Jones charts.
The Friday open is green, with Tesla, Palantir and Google leading.
Except for Real Estate and Software sectors that are lagging, there is no particularly outstander.
Dow Jones Multi-timeframe analysis
The price action shows consolidation towards the 50% of last week's downward move, showing neutral momentum.
Such consolidation offer chances for "bracket breakouts scenarios", where you may take a look at the highs (45,519) and lows (43,811) of yesterday's doji candle to spot whether buyers or sellers take the imminent hand.
The 50-Day MA (44,715) is catching up slowly to current trading, currently 400 points below, and may act as support.
Nonetheless, the action is stalling within the NFP lows resistance zone (44,100 to 44,500), so keep an eye on these levels.
Watch for the formation of a smaller timeframe death-cross, where the 50-period MA crosses the 200 from top to bottom, a typically bearish sign – such signals do have more significance on higher timeframes.
Buyers will have to get through both these MAs, acting as immediate resistance (44,240 MA 50; 44,290 MA 200) before they parry the potential supply zones for sellers to appear.
Momentum is in neutral territory and with the ongoing triangle formation, breakout to any side may gather some strength ofr the weekly close.
Watch for sentiment, global geopolitics and tariff headlines.
Some levels to place on your charts:
Resistance Levels
- Top of triangle formation 44,400 to 44,425
- 4H MA 200 44,44,290 (imminent resistance)
- 44,400 to 44,500 Pivot turned Resistance
- All-time high resistance zone around 45,000
Support Levels
- Current Pivot 43,500 to 43,750
- NFP Lows Mini-Support (43,250
- 43,000 Main Support Zone
- 42,000 June post-war Support
The opening saw some decent buying at the lows of the ongoing triangle formation.
For an upside breakout, look around the 44,400 level.
On the other hand, for a downside breakout, look below the daily lows at 43,950.
