08, June 2016

DowJones (a 4-hour chart)

DowJones (a 4-hour chart)

General overview

The US stocks rose to 7-month highs when Janet Yellen announced her intention to hike the rate this year. She prefers a gradual increase that will happen in accordance with the incoming economic statistics.

Current situation

The index Dow Jones traded in a narrow corridor between marks 17900 and 18000. The resistance comes in at 18000, the support stands at 17900.

MACD is in a positive area. The signal line is in the histogram. RSI reached the overbought level of 70.

Trading recommendations

We will buy the index if Dow Jones manages to break the level of 18000.