Monday, October 15, 2018

DOWJONES - 16 October 2018


Fundamental Highlights

The 30 Dow components fluctuated over the course of the trading session on Monday following the rebound seen last Friday. After recovering from an early move to the downside, the major US averages spent the day bouncing back and forth across the unchanged line. The DOW ended up the day down 89 points or 0.4% to 25,250. The lower close on Wall Street came after the Commerce Department released a report showing much weaker than expected US retail sales growth in the month of September. Looking ahead, Earnings news is likely to attract attention today with Goldman Sachs (GS), Johnson & Johnson (JNJ), and Morgan Stanley (MS) among the companies releasing their quarterly results. Traders are also likely to keep an eye on the latest economic data, including reports on industrial production and home-builder confidence.

Technical Analysis

The Dow has broken through the floor of a rising trend channel in the medium long term. This indicates a slower rising rate at first, or the start of a more horizontal development as indicated in the green area on the chart. As the index approaches the resistance point at 25640, a negative reaction might be triggered as the negative volume balance indicates decreasing optimism among investors. The RSI looks mixed to bullish on the short term indicating that there is a chance for a reaction upwards.

Support: 25100 25000
Resistance: 25640 26250

Chart (H1)