Current trend

The Dow Jones index is correcting in the local trend at around 35566.0. Stock indices in the US are holding on to their highs, as investors react positively to the results of the second wave of the publication of global corporate reports of component companies.

Pharmaceutical giant Merck & Company Inc. exceeded first-quarter earnings of 14.49 billion dollars to 15.00 billion dollars, also better than forecast of 14.43 billion dollars, with a loss per share of 2.06 dollars, better than 2.18 dollars, which were assumed by analysts.

In turn, the pharmaceutical company Pfizer Inc. failed to materially increase revenue, which was 12.70 billion dollars, above the 12.08 billion dollars forecast, but below the 18.30 billion dollars shown in the previous quarter. Earnings per share were 0.67 dollars, the lowest since February 2021.

Construction equipment manufacturer Caterpillar Inc. reported earnings per share of 5.55 dollars, up from 4.91 dollars recorded in the previous quarter. The company's revenue was 17.30 billion dollars against expectations of 16.41 billion dollars after 15.90 billion dollars reported a quarter earlier.

The growth leaders in the index are Caterpillar Inc. ( 8.85%), Cisco Systems Inc. ( 1.19%), Visa Inc. Class A ( 0.86%).

Among the leaders of the decline are Verizon Communications Inc. (-1.91%), Walgreens Boots Inc. (-1.33%), Merck & Company Inc. (-1.28%).

Support and resistance

On the daily chart, the index quotes continue their corrective dynamics, trading within the global uptrend and rising towards the resistance line at 36000.0.

Technical indicators maintain a steady buy signal: the range of EMA fluctuations on the Alligator indicator expands in the direction of growth, and the histogram of the AO oscillator is forming new ascending bars rising in the purchase zone.

Support levels: 35260.0, 34500.0.

Resistance levels: 35725.0, 36500.0.

Trading tips

If the local growth continues, long positions that can be opened if the price overcomes the channel resistance at 35725.0 with a target at 36500.0 and stop-loss at 35500.0 will be relevant. Implementation time: 7 days and more.

If the asset reverses and starts to decline and the price consolidates below 35260.0, short positions can be opened with the target at 34500.0. Stop-loss — 35600.0.