Monday, February 18, 2019

DOWJONES - 18 February 2019


Fundamental Highlights

US indices rallied on Friday, with the Dow ending 1.7% higher at 25833. Despite the political turmoil that came with President Trump’s declaration of a national emergency and softer economic data from the US, Market participants are reacting to good news; another US government shutdown has been avoided last week, and US-China talks concluded on a positive note and are set to resume this week. Sustained optimism and progress over the US-China trade negotiations will keep US equities in a bullish phase while earnings season continues to wind down. Meanwhile, traders largely shrugged off a report from the Federal Reserve showing an unexpected decrease in industrial production in January. Following the holiday weekend, next week's trading may be impacted by reaction to reports on homebuilder confidence, durable goods orders and existing home sales.

Technical Analysis

The DOW index rallied from the 50-period MA to end at 25833 with its next target resistance at December’s high of 26080. Despite an RSI reading sitting at the overbought threshold, A halt in bullish momentum may keep the price ranging with immediate support at 25630, before advancing towards the resistance at 26080 from which the index should accelerate higher.

Support: 25876 / 25630
Resistance: 26080 / 26260

Chart (H4)