Current trend

The Dow Jones index is adjusted at 37814.0 against the background of the publication of corporate reports of component companies.

The financial results of the Internet service Amazon.com Inc. surpassed forecasts of 142.65 billion dollars, recording revenue of 143.31 billion dollars after 127.4 billion dollars over the same period a year earlier. Earnings per share (EPS) amounted to 0.98 dollars after 0.31 dollars in the previous period, with expectations at 0.84 dollars.

The food company The Coca-Cola Co. We managed to record revenue of 11.3 billion dollars, which exceeded the figure of the same period a year earlier of 11.0 billion dollars, and EPS increased to 0.72 dollars from 0.68 dollars.

Fast food chain McDonald's Corp. reported revenue of 6.17 billion dollars, exceeding 5.9 billion dollars over the previous period, while analysts expected 6.16 billion dollars. EPS reached 2.70 dollars, below the forecast of 2.72 dollars, but exceeding the 2.63 dollars recorded a year earlier.

The Starbucks Corp. coffee chain showed revenue of 8.60 billion dollars, which decreased from 8.70 billion dollars recorded in the previous period, while experts expected 9.13 billion dollars, and EPS fell to 0.68 dollars from 0.74 dollars.

The growth leaders in the index are 3M Co. ( 4.72%), Procter & Gamble Co. ( 0,98%), McDonald’s Corp. ( 0,18%).

Caterpillar Inc. (-4.33%), Amazon.com Inc. (-3.29%), The Boeing Co. (-3.25%) stand out among the leaders of the decline.

Support and resistance

On the D1 chart, the index quotes continue their downward correction dynamics, preparing to overcome the monthly low of 37500.00.

Technical indicators have already reversed around, preserving the sell signal, which has begun to strengthen again: the range of fluctuations of the EMAs of the Alligator indicator is expanding, and the AO histogram is forming new correction bars, holding below the transition level.

Support levels: 37540.0, 36590.0.

Resistance levels: 38130.0, 39000.0.

Trading tips

In the event of a reversal and continued decline of the asset, as well as price consolidation below the support level of 37540.0, sell positions with the target of 36590.0 can be opened. Stop-loss – 38000.0. Implementation time: 7 days and more.

If the asset continues to grow, buy positions will be relevant, which can be opened after overcoming the resistance level of 38130.0 with the target of 39000.0 and stop-loss of 37900.0.