Tuesday, September 17, 2019

DOWJONES

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Fundamental Highlights

US indices traded lower on Monday as geopolitical tensions rise following the news of attacks on Saudi oil fields. A bleak global economic outlook is at play as the US-China trade war persists and Saudi’s slashed oil supply heightens the uncertainty in global markets as it acts as an additional headwind to global growth. In terms of data, The US NY Manufacturing index fell below expectations while China’s industrial production highlights the negative impacts of the prolonged trade dispute and tariff hikes. Today, the US publishes industrial production data which may have a muted impact as geopolitical headlines dominate markets’ attention. It is worth noting that while news on Saudi’s oil dilemma would drive markets, the FOMC meeting that awaits this week will be another major factor that could turn markets’ attention.

Technical Analysis

The Dow started the week off by snapping its streak of 8 consecutive gains as it lost 142 points to end at 27076. The price fell and traded below the 20-period MA during the session yet the Dow remained resilient as it held above the psychological support at 27000. While the bullish trend remains intact, a trade below 27000 would indicate selling pressure and lead price to the lower support levels at 26900 and 26800. The latter level is what stands between the Dow and a more bearish phase. On the other hand, holding above 27000 would see the Dow maintain range-bound price action with a sustained move above the 20-period MA required to indicate buying pressure while a break above 27320 would be needed to suggest a bullish attempt to test the record high near 27390.

Support: 27000/ 26900
Resistance: 27160/ 27320

Chart (H4)
DOWJONES