Futures edge higher, Microsoft shines.

U.S. stock index futures showed a slight increase on Monday following the previous week’s rally, fuelled by speculations that U.S. interest rates had reached their peak. Notably, Microsoft (NASDAQ: MSFT) outperformed other mega-cap companies, propelled by the announcement that former OpenAI head Sam Altman will join the software giant.

Shares of Microsoft surged by 2.4% in pre-market trading following the announcement by CEO Satya Nadella that Sam Altman is slated to join the technology giant, heading a newly formed advanced AI research team.

In November, the three primary U.S. stock indices experienced an impressive recovery, marking gains for the third consecutive week on Friday. This trend was propelled by signs of decreasing U.S. inflation, reinforcing the belief that the Federal Reserve had concluded its interest rate hikes.

Traders have almost entirely factored in the probability that the Fed will maintain the current interest rates in December. The chances of at least a 25-basis point rate cut in May are approximately 60%, as indicated by the CME Group’s (NASDAQ: CME) Fed Watch tool.

The Federal Reserve is anticipated to release the minutes of its November meeting on Tuesday, and analysts will closely examine them for insights into the future direction of U.S. interest rates. Additionally, Black Friday sales will serve as an indicator of the current state of U.S. consumer spending.

DOW JONES TECHNICAL ANALYSIS DAILY CHART:

Technical Overview

Dow Jones is currently trading within an up channel.

Dow Jones is positioned above all Moving Averages (SMA).

The Relative Strength Index (RSI) is in the buying zone, while the Stochastic oscillator suggests a neutral trend.

Immediate Resistance level: 35144.34

Immediate support level: 34697.14

HOW TO TRADE DOW JONES

After an initial rise, the Dow Jones corrected and retraced to the 61.8% level. Subsequently, it made a strong upward move and is currently trading near a crucial resistance zone. A breakthrough of this zone could pave the way for further upside potential.

TRADE SUGGESTION- STOP BUY – 35276.85, TAKE PROFIT AT- 35790.31, SL AT- 34962.15.