Tuesday, February 12, 2019

DOWJONES - 12 February 2019

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Fundamental Highlights

US indices came in mixed on a lackluster Monday with the DOW index making a modest decline of 0.21% as investors awaited further cues on two key issues: potential of a second government shutdown and ongoing US-China trade talks. To avoid another government shutdown, Congressional negotiators agreed to a tentative deal that has yet to be finalized before the Friday deadline. Nonetheless, the news is enough to alleviate market sentiment amidst concerns over the progress of US-China trade talks. The highlight of the day is pinned on a speech by Fed Powell as investors look for clues on his recently dovish stance which markets may have potentially overestimated.

Technical Analysis

The Dow index managed to close above the 25000 level at 25053 as it struggled for direction in yesterday’s session. The shorter 20-period MA has crossed below the longer 50-period MA, highlighting the recent shift of downside momentum in price action. However, the Dow index is likely to trade within the Bollinger bands whilst in positive territory so long as price maintains above the 100-period MA and the support at 24890.

Support: 25000 / 24860
Resistance: 25220 / 25380

Chart (H4)
DOWJONES