Friday, April 5, 2019

DOWJONES - 05 April 2019


Fundamental Highlights

The Dow Index rose 0.64% on Thursday and reached a 6 month high as US-China trade optimism catalyzed US equities amidst reports that the two nations have made sustainable progress and are close to finalizing the long-awaited deal markets have sought. While the headwind remains until hopes of a trade deal materialize, a backdrop of an accommodative stance from the Fed which triggered the rally in late December continues to support US equities. Moreover, US jobless claims have declined and market participants will look to today’s US employment data for March to influence sentiment and sustain the upside bias on the DOW alongside US-China trade headlines.

Technical Analysis

The Dow Index broke through major resistance area of 25260/25280 and extended gains past the 25340 level to end at 26384. The all-time high at 26940 is now a possible resistance as the index has enjoyed a notable jump on Thursday. For today, the next area of resistance stands at 25486 and a break through this level is required to signal a continuation of the recent gains towards 26550. Moreover, the RSI has once again entered the overbought region and an exit may indicate a move lower with near-term support holding at 26290 while bullish momentum sustains the upside bias ahead of today’s NFP reports.

Support: 26290 / 26150
Resistance: 26485/ 26550

Chart (H4)