Monday, November 5, 2018

DOWJONES - 05 November 2018


Fundamental Highlights

After moving notably higher over the past few sessions, stocks gave back some ground during the trading day on Friday. The Dow initially moved to the upside but pulled back into negative territory as the session progressed closing in the red down 110 points to 25,270. The downturn was led by Apple, with the tech giant tumbling by 6.6% to a nearly three-month closing low after reporting weaker than expected iPhone shipments. Looking ahead, results of Tuesday's midterm elections may impact this week's trading, with Democratic leaders optimistic they can retake control the House. Traders are also likely to keep an eye on the Federal Reserve's latest monetary policy decision due to be announced next Thursday.

Technical Analysis

Prices continued to consolidate within a tight trading range between 25,010 and 25,580 for 4 days now. Currently, the Dow trades close to the key technical support level at 25,000. While still in a long-term uptrend, the short and medium-term trends both turned bearish. However, the stock index will most probably find buyers again around the 200-period moving average and 25,000 key support level.

Support: 25000 / 24795
Resistance: 25275 /25540

Chart (H1)