Dow Jones Index on Track to Scale New Highs
After closing above 18,000 mark for the first time since July, US stock index Dow Jones Industrial Average (DJIA) on Tuesday opened with marginal gains and extended its moves beyond 18,000 mark.
Losing some ground on softer housing data
Following
the release of lower than expected building permits and housing starts
data for the month of March, DJIA future lost some ground. The index
future, however, has managed to continue holding above the very
important 18,000 psychological mark and is less than 100 points away
from its all-time high level, touched in July 2015.
Levels to watch
On
the immediate upside, all-time high level near 18,150 zone is likely to
act as immediate resistance. Scaling fresh all-time highs within a span
of one year would now set the stage for extension of strong bullish
momentum in the near-term.
Alternatively, retracement from
current levels and a subsequent drop below 18,000 mark seems to trigger a
short-term corrective move. Below 18,000, the correction could be
shallow with immediate downside support near 17,900.
