Source: PaxForex Premium Analytics Portal, Technical Insight

The U.S. stock market finished trading lower after a volatile session, pausing growth during the previous four trading days. Investors evaluated quarterly reports of some of the largest financial institutions in the country, which gave an unofficial start to the corporate reporting season in the USA. At the same time, market sentiment is still affected by the uncertainty associated with the second wave of coronavirus pandemics and the scale of new restrictions that may be imposed by the authorities to contain it.

Dow Jones 30, H4

Pivot: 28730.00

Analysis:

Provided that the index is traded above 28600.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 28730.00
• Take Profit 1: 28950.00
• Take Profit 2: 29200.00

Alternative scenario: 

In case of breakdown of the level 28600.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 28600.00
• Take Profit 1: 28430.00
• Take Profit 2: 28080.00

Comment:

RSI indicates an uptrend during the day.

Key levels:

Dow Jones 30, D1

Pivot: 28703.00

Analysis:

While the price is above 27200.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 28703.00
• Take Profit 1: 29550.00
• Take Profit 2: 30800.00

Alternative scenario:

If the level 27200.00 is broken-down, follow the recommendations below.

• Time frame: D1
• Recommendation: short position
• Entry point: 27200.00
• Take Profit 1: 26540.00
• Take Profit 2: 25950.00 

Comment:

RSI is bullish and indicates further increase.

Key levels: