Friday, March 8, 2019

DOWJONES - 08 March 2019


Fundamental Highlights

US indices traded lower on Thursday alongside European markets as the ECB announced policy measures to stimulate the region’s slowing economy while slashing growth estimate. Moreover the bank decided to extend the hold on interest rates until end of 2019, raising concerns over a decelerating world economy. On the trade front, headlines have been pointing towards trade progress between US and China, however the awaited deal markets seek hasn’t been settled yet. Today’s focus will be on US nonfarm payrolls and unemployment rate, and figures would need to come in stronger than expected to offset uncertainty over global growth and Sino-US trade relations. 

Technical Analysis

The Dow Index posted its 4th day of losses as it declined of 0.78% to close at 25473. Depending on traders’ reaction to today’s employment figures, the index may end the week in negative territory. The daily RSI reading fell below the 50-midline and leaves ample room for further losses in the index. On the other hand, the 4H RSI reading signals oversold conditions however bearish momentum could drive the index to the support at 25290 whilst sustaining price action below the 20-period MA. The index has yet to test the support coinciding with the 200-day MA at 25129, a barrier for the index’s acceleration to the downside. 

Support:25290 / 25129
Resistance: 25520 / 25630

Chart (H4)