US30 buy

First weeks of May: time of long positions for the U.S. Stock Indices

04 may 2022 116
Elena_Berseneva
Elena_Berseneva

Listed among the best MarketCheese authors
1st in the segments "Indices", "US stocks" and "Metals"
2nd in the segment "Currencies"
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The third month of spring has begun, which means again a new opportunity to earn money by working with the U.S. stock indexes Dow Jones (DJIA), S&P 500, Nasdaq and British index FTSE 100, which usually show a tendency to grow in the first half of the month.


Let’s examine DJIA index as an instrument with a significant average yield of deals (0.61%), considering the fact proved by the half-month effect research that the first half of month provides in general more than 81% of the total index rise.


Since the beginning of April, the DJIA index has lost 5.2%, and since the beginning of the year it has lost 9.4%.


What might stop the falling of the index and bring some optimism to the U.S. stock market investors? 


Slowing down the growth of the Core Consumer Price Index and a planned increase of the interest rate by 50 basis points with the decline of the Gross Domestic Product might bring some hope.


From a technical standpoint, the Dow Jones index has strong support at 33000. Since March 2021 there have been attempts to break the level. Four cases of the piercing pattern and two false breakouts are visible in the daily chart for this period of time.


The hammer pattern confirmed on May 3 is also signifying the upcoming change of trend to an ascending one.




Considering the information stated above, the following trading options are possible:


1. Buy the index from the market at the current price. The points 33500 и 34000 can be the corresponding target orders Take Profit 1 and Take Profit 2. You can limit the losses by the Stop Loss order below the point of 32790. You may also close the position at the end of trading on May 13


2. Buy the index when the cost decreases to the point of 32900. The target levels Take Profit 1 and Take Profit 2 remain on the corresponding points 33500 и 34000. You may limit the losses by the Stop Loss order below the point of 32790. Close the position at the end of trading on May 13.




Warning! 

Trading on financial markets implies high levels of risk and can lead to a loss of investment capital. The MarketCheese team isn’t responsible for the possible loss of Your investment funds.

Elena_Berseneva
Elena_Berseneva

Listed among the best MarketCheese authors
1st in the segments "Indices", "US stocks" and "Metals"
2nd in the segment "Currencies"
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