Dow Jones rises 1% as investors wait for initial jobless claims data

Dow Jones futures jumped more than 1% during the London session while investors are waiting for the initial jobless claims data. Yesterday session had seen a last hour sell off but it still managed to stay above 23500 support level. So far, it is still within a trading range between 23600–24150.

A bounce back from 23750 support level could see a continuation of up momentum to test 24150 resistance level. Likewise, a rejection from 24150 could form a short entry, based on identifying support and resistance levels for swing trading, as shown in the video below:

On higher timeframe, it is also within trading range between 23000–24250. 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. A break below 23500 could a test at lower levels 23000–23300.

Below are the potential long setup for Dow Jones index (DJI) for trading session on 7 May 2020 when there is a bounce up at 23650-23750.

Entry: long limit order at 23750

Stop loss: 23500

Take profit: 24150, 24400