- The Dow Jones explored the high end on Monday, but about 40,000 is still stuck.
- The actions began the new negotiation week with a high note, but the bullish impulse faded quickly.
- The inconsistent tariff policies of the Trump administration continue to hinder the feeling of the market.
The industrial average Dow Jones (DJIA) began on Monday with a strong note, being dragged upwards by a general recovery driven by a new spark in the technological rally. However, the bullish feeling faded quickly as investors face a long and slow advance towards what the Trump administration has planned below for tariffs.
President Donald Trump gave another 180 degree turn on his own tariffs, exempting the key electronics and technology of three -digit tariffs imposed on China. The markets were driven by good news, but investors continue to distrust Trump’s indecision of the Trump team about commercial barriers, and are still preparing for additional sectoral tariffs planned by Donald Trump about things like wood and pharmaceutical products.
The calendar of this week’s economic data publications is remarkably less shocking than in recent weeks, although the US retail sales figures are on the agenda for Wednesday. The negotiation week will also be shortened by the Easter holiday on Friday.
Read more news about actions: Apple’s actions take Dow Jones upwards after Trump goes back to consumer electronics tariffs
Dow Jones price forecast
Despite an early rebound, Dow Jones is still tied near the price zone greater than 40,000. The bullish impulse after the tariff adjustments has faded, leaving the largest stock index fighting in a hard resistance zone between 41,000 and 40,000.
The Djia experienced a star rebound from a minimum of 16 months about 37,000, but the price action is now trapped in a difficult consolidation phase below the 200 -day exponential mobile average (EMA) about 41,825. An acute increase in volatility, but a decrease in directional impulse, has left disorderly graphics while investors are dragged by headlines on tariffs.
Dow Jones daily graphics
Dow Jones Faqs
The Dow Jones Industrial Avenge, one of the oldest stock market indexes in the world, consists of the 30 most negotiated values ​​in the United States. The index is weighted by the price instead of capitalization. It is calculated by adding the prices of the values ​​that compose it and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, also founder of the Wall Street Journal. In recent years it has been criticized for not being sufficiently representative, since it only follows 30 companies, unlike broader rates such as S&P 500.
There are many factors that promote the Dow Jones Industrial Average (DJIA) index. The main one is the added performance of the companies that compose it, revealed in the quarterly reports of business benefits. The American and world macroeconomic data also contribute, since they influence investor confidence. The level of interest rates, set by the Federal Reserve (FED), also influences the DJia, since it affects the cost of credit, on which many companies depend largely. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
Dow’s theory is a method to identify the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Avenge (DJIA) and the Dow Jones Transportation Average (DJTA) and just follow the trends in which both move in the same direction. The volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. Dow’s theory raises three phases of the trend: accumulation, when intelligent money begins to buy or sell; Public participation, when the general public joins the trend; and distribution, when intelligent money abandons the trend.
There are several ways to operate with the DJ. One of them is to use ETF that allow investors to negotiate the DJ as a single value, instead of having to buy shares of the 30 companies that compose it. An outstanding example is the SPDR Dow Jones Industrial Avenge ETF (day). Future contracts on the DJ allow the specular operators about the future value of the index and the options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Investment funds allow investors to buy a part of a diversified portfolio of DJ values, which provides exposure to global index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
