Source: PaxForex Premium Analytics Portal, Technical Insight

The U.S. stock markets closed on Friday on the upside after a decline in the previous session, with technology stocks rising in price after the strong Oracle earnings report. Also, market participants are evaluating data on U.S. inflation. Consumer prices rose 0.4 percent in monthly terms in August, while analysts predicted a 0.3 percent increase. The Dow Jones Index rose to 27896.52 on Monday.

Dow Jones Index, H4

Pivot: 27890.00

Analysis:

Provided that the index is traded above 27428.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 27890.00
• Take Profit 1: 28225.50
• Take Profit 2: 28605.50

Alternative scenario: 

In case of breakdown of the level 27428.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 27428.00
• Take Profit 1: 27030.00
• Take Profit 2: 26537.00

Comment:

RSI indicates an uptrend during the day.

Key levels:

Dow Jones Index, D1

Pivot: 27890.00

Analysis:

While the price is above 24800.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 27890.00
• Take Profit 1: 28365.00
• Take Profit 2: 29550.00

Alternative scenario:

If the level 24800.00 is broken-down, follow the recommendations below.

• Time frame: D1
• Recommendation: short position
• Entry point: 24800.00
• Take Profit 1: 23940.00
• Take Profit 2: 22850.00

Comment

RSI is bullish and indicates further growth.

Key levels: