Wednesday, March 13, 2019

DOWJONES - 13 March 2019


Fundamental Highlights

US indices ended mostly higher on Tuesday with the exception of the Dow Index as it was weighed down by declines in its largest weighted component Boeing following the second 737-Max aircraft incident. In economic news, February’s CPI data mildly rose to 0.2% for the first time in four months reaffirming soft inflation and supporting the Fed’s hold on interest rate hikes. On today’s data front, the US publishes PPI data for February and core durable good orders for January. Moreover, PM Theresa May faced another defeat on her Brexit deal in yesterday’s meaningful vote. Thus, investors will continue to monitor Brexit progressions and the protracted Sino-US trade war as news-driven momentum directs short-term price action.

Technical Analysis

The Dow Index reversed Monday’s rebound as it edged 0.38% lower to end at 25554. The index came off its high at the resistance level of 25760 and drifted lower to form a lower high in the recent downtrend. The 20-period MA around 25480 remains indicative of near-term direction as price has yet to trade through that level to target the support at 25380 which would make way for further losses towards the low at 25210. Meanwhile, the 50-period MA is acting as dynamic resistance on the index’s recent down-trend and should keep a lid on any upside moves.

Support: 25380 / 25210
Resistance: 25620 / 25760

Chart (H4)