Current trend

The Dow Jones index is correcting in the local trend at around 35022.0 against the backdrop of the start of publication of corporate reports.

Financial performance of the conglomerate Bank of America Corp. beat analysts' expectations, with revenue of 25.20 billion dollars, above the 25.02 billion dollars forecast, and earnings per share of 0.88 dollars, up from an estimate of 0.84 dollars.

In turn, the investment bank Morgan Stanley recorded revenue at 13.50 billion dollars, while analysts expected the figure at 13.03 billion dollars, and earnings per share amounted to 1.24 dollars.

Aircraft manufacturer Lockheed Martin Corp. reported revenue of 16.70 billion dollars, better than the forecast of 15.92 billion dollars and the previous result of 15.10 billion dollars. Earnings per share were 6.73 dollars after 6.61 dollars in the prior period.

The growth leaders in the index are Microsoft Corp. ( 3.98%), UnitedHealth Group ( 3.29%), Goldman Sachs Group ( 3.08%).

Among the leaders of the decline are Honeywell International Inc. (-1.40%), Visa Inc. Class A (-1.32%), Coca-Cola Co. (-0.39%).

Support and resistance

On the daily chart, the index quotes continue their corrective dynamics, trading within the global Triangle pattern and rising towards the resistance line at 35500.0.

Technical indicators have already reversed and issued a new buy signal: the range of fluctuations of the EMAs of the Alligator indicator continues to expand in the direction of growth, and the AO histogram forms new correction bars, rising in the buying zone.

Support levels: 34700.0, 33700.0.

Resistance levels: 35200.0, 36000.0.

Trading tips

If the local growth continues, long positions that can be opened if the price overcomes the channel resistance at 35200.0 with a target at 36000.0 and stop-loss at 35000.0 will be relevant. Implementation time: 7 days and more.

If the asset reverses and contiues declining and the price consolidates below the local support level of 34700.0, short positions can be opened with the target at 33700.0. Stop-loss — 35000.0.