Trading Signal for Dow Jones #INDU for June 04: Buy above 34,375

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On the 1-hour chart of the Dow Jones Industrial Average #INDU, we noticed a bearish bias. the index is trading below the resistance of 34,633 and above the 200 EMA and above the 4/8 murray within a channel uptrend.

In conversations with Republicans, President Biden offered to drop plans to raise corporate rates to 28% and instead to set a minimum tax rate of 15% for businesses.

The market already has the expectations set in the May employment report (NFP) that will be released tomorrow Friday at the opening of the American session. Ivestors and analysts believe that it will reflect an improvement.

Better-than-expected Non-Farm Payroll (NFP) data could push the Dow Jones down to the 34,000 area. On the contrary, a data relatively similar to that predicted by analysts could already be ruled out by the markets. The Dow Jones could develop a strong upward movement.

According to the 1-hour chart, we note that the eagle technical indicator is showing a buy signal, as it is moving away from the 10-point zone, and with a probability of an upward movement in the next few hours.

The key level to watch is the 4/8 murray zone at 34,375, where the uptrend channel converges. This zone could be a good technical bounce point and would be a good opportunity to buy at those levels with targets at 34,633 and 34,755.

Our recommendation is to buy at the 34,484 zone of the 200 EMA or the 34,375 zone of 4/8, with targets at 34,633 and 34,825.

Support and Resistance Levels for June 04, 2021

Resistance (3) 34,956

Resistance (2) 34,855

Resistance (1) 34,715

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Support (1) 34,372

Support (2) 34,210

Support (3) 34,028

The material has been provided by InstaForex Company - www.instaforex.com

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