Friday, January 18, 2019

DOWJONES - 18 January 2019


Fundamental Highlights

The Dow Index surged 250 points before it fell back after positive claims regarding US-China trade relations headlined but were later denied, exhibiting strong market sensitivity towards the trade situation. The recent rally has been supported by a dovish tone from the Fed and subsiding fears over the unresolved trade war, however remains difficult to justify considering the prolonged US government shut down and signs of slowdown abroad. Traders can expect the market’s aversion from concerning long-term fundamentals to draw attention to a chapter of corporate earnings reports that persists as a force of market action.

Technical Analysis

The Dow index continues its upside move as it meets resistance at 24425. Though the RSI reading has reached the overbought threshold, price action is exhibiting strength and may overlook it. With a break below support at 24190 seeming unlikely, The DOW should rise with the upper band to meet further resistance at 24525 while the 20-period MA acts as its dynamic support.

Support: 24190 / 24040
Resistance: 24140 / 24260

Chart (H4)