Current trend

The Dow Jones index is correcting in the local trend at around 38373.0. This week, a block of macroeconomic reports of component companies was published, in particular, the financial results of major market players — Meta Platforms Inc., IBM Corp., AT&T Inc., and The Boeing Co. were presented.

Technology giant Meta Platforms Inc. demonstrated revenue of 36.46 billion dollars, exceeding the 36.14 billion dollars forecast, as well as 28.65 billion dollars recorded a year earlier. Earnings per share (EPS) increased to 4.71 dollars from 2.20 dollars, while analysts had expected 4.32 dollars.

The IBM Corp. electronic corporation showed revenue of 14.46 billion dollars, which exceeded the 14.3 billion dollars recorded a year earlier, and EPS amounted to 1.68 dollars after 1.36 dollars.

In turn, the results of the telecommunications giant AT&T Inc. did not meet expectations: revenue amounted to 30.0 billion dollars with preliminary estimates of 30.53 billion dollars, whereas in the previous period the figure reached 30.1 billion dollars, and EPS decreased to 0.55 dollars from 0.60 dollars, but exceeded the projected 0.53 dollars.

Aircraft manufacturer The Boeing Co. reported revenue of 16.57 billion dollars, which was higher than the forecast of 16.5 billion dollars, but below 17.92 billion dollars in the same period a year earlier. The loss per share was 1.13 dollars, which turned out to be only slightly better than last year's figure of 1.27 dollars.

The growth leaders in the index are Coca-Cola Co. ( 1.52%), Walmart Inc. ( 1.30%), Apple Inc. ( 1.27%).

Among the leaders of the decline are Boeing Co. (-2.86%), Home Depot Inc. (-1.80%), Amazon.com Inc. (-1.64%).

Support and resistance

On the D1 chart, the index quotes continue their upward correction dynamics, gradually returning to the area of annual highs at 39600.00.

Technical indicators have not yet reversed around, holding the sell signal, which is weakening every day: the range of fluctuations of the EMAs of the Alligator indicator is narrowing, and the AO histogram is forming new correction bars, being below the transition level.

Support levels: 38100.0, 37200.0.

Resistance levels: 38600.0, 39500.0.

Trading tips

If the asset continues to grow, buy positions can be opened after overcoming the resistance level of 38600.0 with the target of 39500.0 and stop-loss of 38300.0. Implementation time: 7 days and more.

In the event of a reversal and the continued decline of the asset and price consolidation below the support level of 38100.0, sell positions with the target of 37200.0 may be opened. Stop-loss – 38500.0.