The US budget has been outlined by President Joe Biden and the $6 trillion plan looks like it will be a boom for the stock market. Early signs are pointing to a resurgence in the stocks with the Dow the most likely to gain the largest.
PrimeXBT Analyst, Kim CHua, has pinned 36,000 as a target for the Dow based on current trends, the expected impact from the budget, as well as the technical data showing future trends.
Post the unveiling of Biden’s $6 trillion budget for next year, the stock market is expected to be the key beneficiary again, with spending bills to foster companies in the infrastructure related industry.
The stock market charts are looking to be back on a rising trend, with the Dow chart looking especially auspicious after putting in a double bottom. Its current up channel should bring the Dow towards a target of 36,000 in the coming weeks before we see any major sell-off again. There could be a slight pullback to around 34,000 in the meantime if some negative news hits the market, but it should not derail the Dow’s upward trajectory. In the event that happens, traders should take it as a chance to buy to ride back up to 36,000, says PrimeXBT market Analyst, Kim Chua.
About Kim Chua, PrimeXBT Market Analyst:
Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.