- summary:
- The Dow Jones index rose in two consecutive sessions for the first time in one month, but the data is not convincing.
Dow Jones (Indexdjx: .Dji) rose for the second consecutive session on Monday, defying soft retail sales data. The index increased by 0.3 % to 41,638 points in the first hour of the new week of trading, amid the basic anxiety due to a possible escalation of the mass tariff war between the United States and its largest commercial partners.
American retail sales data increased by 0.2 % in February, slower of medium projection 0.6 %. However, this was still a relatively strong performance if car sales numbers were excluded. The basic retail sales increased by 0.3 % on a monthly basis, an increase of -0.6 % of the shrinkage in January, and in line with the average analyst expectations.
Many investors have interpreted the data as indicating that consumption trends are still stable despite the sour commercial tariff environment. However, the real impact of definitions is likely to be more clear in March data, as it wanders in the commercial barriers seen this month.
American definitions against Canada, Mexico, China and the European Union have entered into force in the past three weeks, with revenge against countries affected by counter -tariffs. This is likely to lead to high inflation, which leads to low spending on consumer.
Moreover, the Trump administration lined up a large group of mutual definitions against more countries that start on April 2, with the possibility of nations. This scenario prepares a Dow Jones for a possible decline in the coming weeks. However, stock prices in Goldman Sachs, United Holth, Nick and IBM increased by more than 1 % at the time of writing this report, probably, the theater is more likely to make gains in the near -term by the Dow Jones Index.
Download Jones Index Prepultion
The level of the Dow Jones 41,494 points, and the momentum indicates that the bullish procedure will likely continue in the near term. The first resistance index is likely to face 41,799 points. However, the expanded control by buyers will violate this barrier and potentially test 42,100 points.
On the contrary, the index momentum can turn towards the downside if its actions are less than 41,494. This first support can witness at the sign of 41,269 points. The bullish narration will be invalid if the procedure ends to less than this level. Moreover, this momentum can extend the downside to test 41,023 points.
