Tuesday, April 9, 2019

DOWJONES - 09 April 2019


Fundamental Highlights

US indices had a mixed performance on Monday as the Dow Index was weighed down by Boeing shares, the index’s largest weighted constituent, and fell 0.32% to end at 26341. Moreover, a lack of developments on the global trade front eased trade optimism and made room for bears to take control of the day. Market participants displayed an overconfidence in a US-China trade deal that catalyzed US equities to record highs last week. However, this week investors are likely to take on a cautious stance as earnings season approaches and corporate reports will be the main driver of US indices as they reflect business confidence and economic conditions in the US. In terms of data, today the US publishes Jolt Job openings which is estimated to rise.

Technical Analysis

Following Friday’s high at 26472, The Dow index shows a bearish candle on the daily chart as it declined to confirm a pullback in price action on Monday. Moreover the RSI reading on the daily chart failed to form a higher high corresponding with price action indicating a short-term reversal in the bullish trend. Holding below the 26340 level will indicate the presence of sellers with a break through the support at 26260 required to signal a lower move and extend the pullback towards support levels at 26150, and 26110. Look for the RSI reading to decline well below 50 to signal the downside move as price is likely to hover around the 20-period MA before taking further direction.

Support: 26260/ 26150
Resistance: 26340/ 26480

Chart (H4)