Stock Indices: Dow Jones on fresh 2-month highs as sentiment improves

On Monday Dow Jones Industrial Average traded within the range of 16,940.61-17,098.84. The benchmark closed at 17,072.82, edging up 0.39% (66.05 points) on a daily basis. It has been the 13th gain in the past 25 trading days and also a fifth consecutive one. The daily high has been the highest level since January 6th, when the Dow went up as high as 17,154.83. In weekly terms, the blue-chip gauge added 2.20% last week to mark its third consecutive period of gains. The average has risen 3.37% so far during the current month, following a 0.30% increase in February.

Among the companies included in the benchmark, 12 posted a daily decline on Monday and 18 posted a daily gain. Shares of Nike Inc (NKE) recorded the worst performance within the Dow on Monday, going down 3.28% to close at $59.25. It has been the 7th drop in the past 20 trading days and also the steepest one since February 8th. March 7th low of $58.97 per share has been the lowest price level since February 19th, when a low of $57.63 per share was registered, while the daily volume (12.83M) has been the highest since February 11th. Nike has tumbled 3.80% so far in March, following a 0.68% drop in February. According to New York Times, the USD 500 000 bonus from the sports goods producer to the Kenyan athletics federation was immediately withdrawn and not featured in its official books. Officials from the company denied the accusations.

Visa Inc (V) was the second worst performer within the DJIA yesterday, going down 2.65%, to close at $71.94. It has been the 11th drop in the past 20 trading days, a fourth consecutive one and also the steepest one since February 8th. March 7th low of $71.35 per share has been the lowest price level since February 24th, when a low of $70.38 per share was registered, while the daily volume (16.67M) has been the highest since February 8th. Visa has fallen 0.62% so far during the current month, following a 2.82% slump in February.

At the same time, the shares of Chevron Corporation (CVX) registered the most notable daily increase within the DJIA on March 7th, going up 3.12%, to close at $90.67, while marking their 12th gain in the past 20 trading days, a fifth consecutive one and also the sharpest one since March 1st. March 7th high of $90.76 per share has been the highest price level since December 31st 2015, when a high of $90.86 per share was reached. Chevron has risen 8.66% so far during the current month, following three consecutive months of decline.

Caterpillar Inc (CAT) was the second best performer within the Dow on March 7th, appreciating 2.65%, to close at $74.77 per share. It has been the 13th gain in the past 20 trading days and also a ninth consecutive one. March 7th high of $75.73 per share has been the highest level since November 4th 2015, when the Caterpillar shares went up as high as $75.93. Additionally, the daily trading volume (10.74M) has been the highest since February 4th. The construction and mining equipment manufacturer has added 10.44% to its value so far in March, following an 8.77% surge in the preceding month.

On Monday major indices received support amid continuing rebound in the prices of the WTI and brent oil. Crude oil futures reached highs unseen since January 4th in yesterdays trade, going up as high as $38.11 per barrel. Since the 13-year low of $26.05 per barrel, registered on February 11th, crude oil has rebounded over 44%.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the Tuesday pivot levels for DJIA are presented as follows:

R1 – 17,087.32
R2 – 17,101.83
R3 (range resistance) – 17,116.33
R4 (range breakout) – 17,159.85

S1 – 17,058.32
S2 – 17,043.81
S3 (range support) – 17,029.31
S4 (range breakout) – 16,985.79

By using the traditional method of calculation, the weekly pivot levels for DJIA are presented as follows:

Central Pivot Point – 16,859.85
R1 – 17,209.30
R2 – 17,411.83
R3 – 17,761.28

S1 – 16,657.32
S2 – 16,307.87
S3 – 16,105.34