Dow extends gains on renewed risk sentiment
The Dow Jones opened higher on Monday and rallied to three-week higher on Monday, in extension of last Friday’s 2% advance, keeping the positive sentiment on China’s border opening and signals that cooling US labor market would lead to further slowing of the pace of Fed’s policy tightening.
Extended rally retraced nearly 61.8% of 34962/32684 pullback, brightening near-term outlook for further advance.
Retest of 34962 top (Dec 13, the highest since mid-April) comes in focus, but the action will require unchanged or further improved favorable conditions.
The action remains underpinned by thick daily Ichimoku cloud, with further support from daily studies, which returned to full bullish setup.
Top of rising daily cloud offers strong support at 33624 and should keep the downside protected to maintain renewed positive tone.
Res: 34092; 34282; 34424; 34673
Sup: 33823; 33624; 33554; 33401