Monday, May 27, 2019

DOWJONES - 27 May 2019


Fundamental Highlights

US Indices ended the week slightly higher as they rebounded off of Thursday’s steep declines. President Trump continued to sway markets with comments as he did on Friday by offering hope that a trade deal remains possible. The upside move was limited as escalating trade tensions alongside economic data failed to progressively uplift market sentiment. On economic data, following Thursday’s disappointing US manufacturing figures, US Durable goods orders for April fell by 2.1% and is the latest data to highlight economic weakness domestically which may prove to be another market concern amidst the US-China trade war. Today, the US stock market is closed due to Memorial Day which may see a lack of trade developments maintain Friday’s shift in sentiment.

Technical Analysis

The Dow trimmed its losses as it rose 0.37% to end at 25585 on Friday. The Dow has managed to hold above the 200-day Ma around 25430 despite having dipped below it and may find near-term support around this level while resistance at 25950 limits a shift to the upside. However the index remains vulnerable to downside price action as it broke its sequence of higher lows and should see a continuation of the downtrend with a break below 25200. Failure to trade above 25680 level should leave the index trading below the 20-period MA with a decline below 25430 required to target lower support levels at 25340 followed by 25200.

Support: 25430/ 25330
Resistance: 25680/ 25790

Chart (H4)