17 April 2018 (8:44 AM EDT)
U.S. stock futures are rallying like crazy today and there is only one thing to say about their trading pattern today- this is how a major resistance is broken.
As we have been writing for many sessions now, U.S. stock markets have been inching up from their support levels, continuously making “higher lows” which signals an uptrend, but still, current resistance levels had been stopping major indexes from making a big dash ahead.
Today, a gap up opening is set to provide that expected big dash to major indexes, especially Dow Jones, and take U.S. stock markets towards their next and higher targets.
Dow Jones has been finding it difficult to breakout of its strong resistance zone between 24,500- 24,600. of 24,500. Yesterday, the index closed positive but within this resistance zone.
Today, Dow Jones futures are more than 200 points higher (and still climbing at the time of writing), indicating that this resistance zone is going to be clear with a parachute jump. Usually, that is how any strong resistance or support is broken when markets get fed up of a restricted trading pattern.
After that, if no negative political or otherwise event happens, Dow Jones will have next targets ope 24,930 and 25,330.
European stock markets are also rallying today and the leading European index, DAX (Germany) has moved above its last month’s high mark, which indicates that this index is also aiming for more gains in near term.
Day traders should still keep an eye on intraday support and resistance levels to see how the trend develops after a gap up opening. It can either continue to accumulate gains or turn range bound.
Pivot levels of major U.S. indexes are given on our Pivot Trading page. the same can be found here also:
- Today’s Pivot Levels for Dow Jones
- Today’s Pivot Levels for Nasdaq 100
- Today’s Pivot Levels for Russell 2000
- Today’s Pivot Levels for S& P 500
Volatility levels may still remain high in U.S. stock markets and day traders should continue to watch for intraday dips and bounces from important support and resistance levels.