Wednesday, November 13, 2019



Fundamental Highlights

US indices closed higher on Tuesday with the exception of the Dow which ended unchanged from the previous session. President Trump delivered a speech in which he reiterated that the initial phase of a trade deal with China would be imminent agreed upon while providing no specifications and renewing tariff threats. Thus trade uncertainty will persist and is likely to limit further advancement in the Dow unless there is a fresh flow of positive trade headlines. Separately on economic data, the US releases inflation data ahead of a speech by Fed Chairman Powell in which he is unlikely to offer fresh guidance on future monetary policy but will be closely watched by markets.

Technical Analysis

The Dow ended virtually flat at 27691 on Tuesday. It was a range-bound session as price traded below the resistance at 27742 and above the 27600 level. Below 27600, support can be found at the 50-period MA currently near the 27480 level at which the Dow briefly pulled back to on Monday. With the bullish trend on stall, The Dow should remain directionless until we see a break above the all-time high at 27742 or a break below the 27480 level. Look for a sustained move below 27600 to indicate selling pressure and a decline below 27480 to target the lower support levels at 27370 and 27290.

Support: 27600/ 27480
Resistance: 27742/

Chart (H4)