Source: PaxForex Premium Analytics Portal, Technical Insight

U.S. stock indices closed trading lower on Friday, posting their biggest weekly decline since October 30. Investors were assessing President-elect Joe Biden's pandemic economic aid plan COVID-19 and the quarterly results of major banks. The $1.9 trillion package presented by Biden includes, among other things, direct payments to U.S. residents, unemployment benefits supplements, and an increase in the minimum wage

Dow Jones 30, H4

Pivot: 30784.00

Analysis:

Provided that the index is traded above 30535.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 30784.00
• Take Profit 1: 30980.00
• Take Profit 2: 31260.00

Alternative scenario: 

In case of breakdown of the level 30535.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 30535.00
• Take Profit 1: 30060.00
• Take Profit 2: 29820.00

Comment:

RSI indicates an uptrend during the day.

Key levels:

Dow Jones 30, D1

Pivot: 30907.00

Analysis:

While the price is above 29700.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 30907.00
• Take Profit 1: 31300.00
• Take Profit 2: 33000.00

Alternative scenario:

If the level 29700.00 is broken-down, follow the recommendations below.

• Time frame: D1
• Recommendation: short position
• Entry point: 29700.00
• Take Profit 1: 28480.00
• Take Profit 2: 26100.00

Comment:

RSI is bullish and indicates a mid-term uptrend.

Key levels: