Current trend

The Dow Jones Industrial Average is falling near 41151.0 amid weak earnings reports from leading tech companies.

Thus, the giant in the field of development and sale of personal and tablet computers Apple Inc. managed to achieve the estimated revenue targets, which amounted to 85.8 billion dollars, exceeding both the 84.45 billion dollars forecast and last year's 81.8 billion dollars, and the profit per share turned out to be higher than the forecast of 1.35 dollars, settling at 1.40 dollars. One of the company's main competitors, Intel Corp., reported quarterly revenue of 12.83 billion dollars, below analysts' estimates of 12.93 billion dollars and 12.90 billion dollars in the same period earlier. Earnings per share came in at 0.02 dollars, narrowly avoiding a loss and falling below the 0.10 dollars forecast.

E-commerce leader Amazon.com Inc. reported revenue of 147.98 billion dollars, beating estimates of 148.68 billion dollars and last year's 134.40 billion dollars, while earnings per share (EPS) came in at 1.26 dollars, beating expectations of 1.03 dollars.

The growth leaders in the index are Procter & Gamble Co. ( 3.05%), Johnson & Johnson ( 1.84%), Coca-Cola Co. ( 1.83%).

Among the leaders of the decline are The Boeing Co. (−6.45%), Intel Corp. (−5.50%), Chevron Corp. (−4.89%).

Support and resistance

On the daily chart, the index quotes continue the corrective dynamics, approaching the resistance line of the Triangle pattern with boundaries of 39900.0–38700.0.

Technical indicators are gradually slowing down the upward signal: the range of EMA fluctuations on the Alligator indicator is narrowing down, and the AO histogram is forming new corrective bars, being held above the transition level.

Support levels: 39900.0, 38600.0.

Resistance levels: 40420.0, 41250.0.

Trading tips

Short positions can be opened after the price consolidates below the support level of 39900.0 with the target of 38600.0. Stop-loss — 40300.0. Implementation time: 7 days and more.

Long positions should be opened after overcoming the resistance level of 40420.0 with a target of 41250.0 and a stop-loss of 40100.0.