Friday, January 11, 2019

Dow Jones - 19 January 2019


Fundamental Highlights

U.S indices were rattled on Thursday following a downbeat reading on US manufacturing in addition to the effects of a slowing Chinese economy and Sino-US trade tensions that have challenged corporate flows in both nations. Telling trade talks between the two countries will be held next week and will leave an impact on economic prospects. An eventful day is ahead as the US employment numbers’ release will provide further evidence on the progress of the US economy. Moreover, following the economic reports Fed Chair Powell speaks and investors will watch it closely to interpret his remarks into further data on the notorious tightening monetary policy he had set for 2019.

Technical Analysis

The Dow index fell 2.38% yesterday and touched on support level 22586 before bouncing back up. Depending on today’s US economic data and Fed Powell’s statement, the Dow Index may extend its losses before reaching the 20-period MA at 23030. Should price action move past that level alongside an RSI reading well above 50, It could reach further resistance level around 23340. Otherwise, the blue-chip index remains in bearish territory.

Support: 22765 / 22547
Resistance: 23010 / 23100

Chart (H4)