Edited by Vani Rao
The Dow Jones Industrial average edged higher to 15,783.10, up 21.32 points or 0.14%on Tuesday’s trade,quietly waiting for earning releases from major US retailers like Wal-Mart Stores Inc. (NYSE:WMT), Macy’sInc. (NYSE:M), Best Buy Co. Inc.(NYSE:BBY), and J.C. Penney Company Inc. (NYSE:JCP). Amidst the earnings uncertainty, stocks like IBM Corp., Wall Mart Stores Inc., and Visa Inc. helped the Dow to remain positive on Tuesday’s trade. Following the trails for the recent economic data release, we are optimistic about a good earnings season for major US retailers. Moreover, these earning releases are likely to set the tone for the market going forward.
At a more technical level, the charts above indicate that the 15,800 level appears to be the next critical aspect to look out for, and once crossed, the 16,000 level will pose strong resistance to the boarder index. As far as individual indicators are concerned, the Dow 30 is trading above its 20-day, 50-day, and 200-day simple moving average and continues to give bullish signals. On the other hand, indicators like the RSI and Stoch RSI continue to indicate an overbought territory for the index. The MACD is well below the Signal line, indicating a possibility of trend reversal for the Index. WSA continues to believe in a higher upside for the Dow Jones Industrial average going forward and is betting on 16,100 as the next short-term target.