Source: PaxForex Premium Analytics Portal, Technical Insight

U.S. stock indices rose at the end of trading on Wednesday amid growing hopes for new economic stimulus measures. Meanwhile, the U.S. stock market showed the first monthly decline since March.

Dow Jones 30, H4

Pivot: 27780.00

Analysis:

Provided that the index is traded below 28020.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 27780.00
• Take Profit 1: 27235.00
• Take Profit 2: 26940.00

Alternative scenario: 

In case of breakout of the level 28020.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 28020.00
• Take Profit 1: 28360.00
• Take Profit 2: 28590.00

Comment:

RSI indicates a downtrend during the day.

Key levels:

Dow Jones 30, D1

Pivot: 27832.00

Analysis:

While the price is below 28360.00, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 27832.00
• Take Profit 1: 26540.00
• Take Profit 2: 25950.00

Alternative scenario:

If the level 28360.00 is broken-out, follow the recommendations below.

• Time frame: D1
• Recommendation: long position
• Entry point: 28360.00
• Take Profit 1: 29550.00
• Take Profit 2: 30825.00

Comment:

RSI is bearish and indicates further decline.

Key levels: