Friday, March 1, 2019

DOWJONES - 01 Mars 2019


Fundamental Highlights

US indices finished lower on Thursday as US Q4 GDP rose 2.6% versus an estimate of 2.2%. Moreover, US jobless claims rose while the Chicago PMI report pointed to an increase in manufacturing activity and will be followed by today’s release of the nation’s manufacturing PMI report. Meanwhile, Investors will watch for US-China trade headlines for further clarity and measure the inflationary impact of today’s Core PCE data. Though economic growth is being demonstrated by the positive data, its implications on tightening monetary policy threatens the bullish rally in US equities. Thus, Sentiment should remain cautious as investors assess US economic data against a backdrop of overwhelming geopolitical tensions.

Technical Analysis

The Dow Index traded sideways on Thursday before ending lower at 25916 to post its third day of losses. Bollinger bands have tightened suggesting a period of indecision and impending volatility as price should range within the bounds before taking direction. While the main trend is up and the support at 25760 separates the index from a bearish phase, Traders’ reaction to the support at 25870 and the resistance at 26084 will determine further direction.

Support: 25870 / 25760
Resistance: 26080 / 26160

Chart (H4)