Dow Jones Industrial Average Index Expects to Visit the Record high

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By :  ,  Financial Analyst

Dow Jones Industrial Average Index Expects to Visit the Record high

The Dow Jones Industrial Average gained 83 points (+0.3%) to 28,331 yesterday. amid rising expectations for the Fed's loose monetary policy. In addition, the economy also shows signals of recovering from the coronavirus pandemic.

Regarding U.S. economic data, durable goods orders rose 11.2% on month in July (+4.8% expected). Last Friday, the Markit U.S. Manufacturing Purchasing Mangers' Index (preliminary reading) spiked to 53.6 in August (52.0 expected), and the Services PMI jumped to 54.8 (51.0 expected).

Federal Reserve Chairman Jerome Powell's scheduled speech at Jackson Hole meeting will be the key focus today. Meanwhile, the second estimate of U.S. 2Q annualized GDP (-32.5% on quarter expected) and initial jobless claims for the week ending August 22 (1 million expected) will be released later in the day.

From a technical point of view, the index is challenging the resistance level at 28365 (the Gap occurred on February 24) after breaking above the symmetric triangle pattern.

Currently, the index stays above both rising 20-day and 50-day moving average. 

The relative strength index is supported by a rising trend line drawn from March low.

Bullish readers could place the nearest support level at 27000. A break above the resistance level at 28365 would trigger a rise to the record high at 29550.

Source: GAIN Capital, TradingView
Related tags: Indices DJIA

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