The Dow Jones Industrial Average is continuing to record all-time highs with ten positive months since November and it started to show that will lock another one positive month in October. The blue-chip index created a streak which consists of four consecutive positive weeks, adding more than 4% at its value, while it is on track to record the fifth. The Hurricanes seem to have left the U.S. indices intact and moreover, they are rising on the speculations that Fed will raise rates in December despite the persistently low inflation rate. Moreover, the fact that the unemployment rate is at the lowest level has been in more than 16 years, is boosting the stocks.
The most significant things to watch in the near future, that may affect the U.S. stocks, is the plan of Federal Reserve to roll off its $4.5 trillion balance sheet in October and the earning reports of the companies for the third quarter, as the earnings period is about to start.
Dow Jones Industrial Average – Technical Outlook
The Dow Jones Industrial Average index traded higher over the previous days maintaining its gains. The index is trading in an ascending move since February 2009, which had a bottom at 6470 support level. From then, the DJIA is extending its gains and over the last months is posting an all-time high every session. In October, the price touched the 22870 price level and added more than 23% to its performance the last ten months.
From the technical point of view, on the daily timeframe, the three simple moving averages (50, 100 and 200) are confirming the significant bullish attitude. The RSI indicator is holding within the overbought zone but now is flattening. Moreover, the MACD oscillator lies above the trigger and zero lines with stronger momentum than before. Our expectation is a continuation of the rising, recording new high.
Goldman Sachs is Expected to Report Strong Earnings
The blue-chip stock of the Goldman Sachs Group, one of the thirty stocks which constitute Dow Jones, is expected to report their earnings on Tuesday, October 17th. The American multinational finance company is forecasted to show strong gains in the three-month period ends in September 2017. The company’s revenues are expected to have been $7.54B and earnings per share (EPS) to have risen to $4.17 from $3.95 the preceding revenues. In the second quarter, the investment bank has revenues of $10.56B against expectations of $7.52B.
Goldman Sachs – Technical Outlook
The Goldman Sachs Group, Inc. (NYSE: GS) shares posted a green month, surging almost 9% in just one trading period, while this month the price rose more than 4% so far. However, now the price has a partial recovery and returned some of its gains. The stock soared to a fresh seven-month high at $247.00 early this month. We would expect a bounce off the 23.6% Fibonacci retracement level with low at $215.00 and high at $247.00 before continues its bullish tendency until the $250.00 resistance barrier. On the other hand, a slip below the aforementioned fibo level will open the way for the $236.00 support level.