Dow Jones jumps on reopening economy

Dow Jones futures jumped more than 0.8% to test the resistance level near 24000 while investors look forward to reopening of economy. Dow Jones had a last hour sell off near the level 24150, which is also the resistance zone. I anticipate Dow to bounce between trading range of 23750–24150 for intraday trading.

A test and rejection from the resistance zone near 24150 could be an entry for short position while a rebound from the support level near 23750 (the gap support area) could form a long entry. This strategy on drawing support and resistance is shown in the video below:

From a swing trading point of view, I anticipate Dow to test the targets at higher level (swing high at 24750) once it can commit above 24150.

Below are the potential long setup for Dow Jones index (DJI) for trading session on 6 May 2020.

Entry: long limit order at 23750

Stop loss: 23500

Take profit: 24150, 24400

For potential short setup if there is rejection near 24150:

Entry: short limit order at 24150

Stop loss: 24350

Take profit: 23750