FxWirePro: Dow likely to reach new record high if support at 23260 holds

Global stock markets selloff that was triggered in last weeks of January rattled investors’ nerves for two weeks and still continues to do so. We at FxWirePro were already bearish in Eurostoxx50 before the selloff took place after it we also revised our outlook for the German benchmark stock index DAX earlier this week. While we have turned bearish on European stocks that is not the case when it comes to the United States.

The U.S. stocks are being supported by Trump administration’s tax cuts and reforms, while the European benchmarks don’t have that leverage.

Our calculations for the Dow Jones Industrial average suggests that the Dow is set to hit new record highs in the coming months if the crucial support at 23260 holds, which has already supported stocks once during the global stock markets selloff. Calculations suggest that the Dow is set to reach 27,700 if the above-mentioned support holds.