Tuesday, May 28, 2019

DOWJONES - 28 May 2019

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Fundamental Highlights

US Index futures traded marginally higher on a day of low-volume trading due to the US Memorial day holiday. Today we should see marked price movement as regular trading hours resume and the US publishes consumer confidence figure alongside Fed Dallas Manufacturing Index. The consumer confidence report is likely to have an impact on price action during the day while US-china trade chatter continues to dominate markets’ attention. With the US now turning to progressing trade relations with Japan, a lack of negative trade headlines may leave room for gains in US equities. Nonetheless, so long as US-China trade tensions persist, caution is likely to be the leading sentiment throughout global markets as global growth suffers.

Technical Analysis

Dow futures drifted between slight gains and losses as Monday’s holiday resulted in subdued trading activity. The price failed to trade and hold above the 25680 level which should leave the index hovering below the 20-period MA, with a decline below 25430 required to target the lower support level at 25340. Alternately, trading above 25680 would target resistance at 25790 followed by resistance at 25950 which has so far refrained the Dow from reaching the 26000 level.

Support: 25430/ 25330
Resistance: 25790/ 25950

Chart (H4)
DOWJONES