Current trend

The Dow Jones index is correcting in the local trend at around 38921.0. The season for publishing financial results of component companies is coming to an end, and today reports will be presented that can affect the stock indicator quotes.

Analysts expect revenue from retail chain Target Corp. will be 31.83 billion dollars, exceeding the 25.4 billion dollars recorded a quarter earlier, and earnings per share will increase to 2.41 dollars from 2.10 dollars. In addition, discount store operator Ross Stores Inc.'s revenue is projected to reach 5.8 billion dollars from 4.9 billion dollars in the previous period, and earnings per share will rise to 1.65 dollars from 1.33 dollars.

In turn, the situation on the bond market also provides local support to the index: 10-year bonds are trading at a rate of 4.211%, down from last week's high of 4.309%, and the yield on 20-year bonds is 4.474%, which is also below the peak of 4.553% recorded a week earlier.

The growth leaders in the index are Intel Corp. ( 4.08%), IBM Corp. ( 2.57%), Dow Inc. ( 2.28%).

Among the leaders of the decline are Chevron Corp. (-2.56%), Apple Inc. (-2.54%), Merck & Co. Inc. (-2.32%).

Support and resistance

On the daily chart, the index quotes continue their upward trend, remaining within the global ascending channel with boundaries of 40000.0–38600.0.

Technical indicators hold a steady buy signal, which continues to strengthen: the range of EMA fluctuations on the Alligator indicator stays wide, and the AO histogram is forming new corrective bars, being above the transition level.

Support levels: 38600.0, 38000.0.

Resistance levels: 39150.0, 40000.0.

Trading tips

If the local growth continues, long positions that can be opened if the price overcomes the channel resistance at 39150.0 with a target at 40000.0 and stop-loss at 39000.0 will be relevant. Implementation time: 7 days and more.

If the asset reverses and continues declining and the price consolidates below the local support level of 38600.0, short positions can be opened with the target at 38000.0. Stop-loss — 39000.0.