Wednesday, January 30, 2019

DOWJONES - 30 January 2019

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Fundamental Highlights

The Dow posted a minor gain of 0.2% following stable earnings reports whilst investors await cues from today’s US-China trade talk and the FED’s meeting. Though markets are expecting rates to remain unchanged, the focus will be on how the FED addresses their balance sheet reduction as it affects market prices for riskier assets such as stocks. Moreover, its implications on the course of monetary policy for the year will determine market sentiment.

Technical Analysis

The Dow is struggling to extend its rally as it continues its 2 week course of ranging between the resistance at 24830 and support at 24216. Whilst the near-term bullish picture remains intact with the RSI reading sitting above 50, direction on the index is pending. Price should outtake resistance at 24640 to extend the index to higher resistance levels, However a trade below the 20-period MA could push the price to test support at 24450

Support: 24450 / 24360
Resistance: 24640 / 24720

Chart (H4)
DOWJONES