Monday, January 28, 2019

DOWJONES - 28 January 2019


Fundamental Highlights

US stocks closed higher on Friday as investors’ sentiment improves alongside a positive earnings season and a report claiming Fed policy makers intend to end the unfavorable balance sheet reduction that places a burden on interest rate policy. Moreover, while a deal is negotiated on border security, Trump decided to temporarily reopen the government after the historic record of a 35-day shutdown. However, its transient nature will do little to impact the market, and investors will keep focus on developments in US-China trade relations, this week’s corporate earnings releases, and Wednesday’s FOMC meeting.

Technical Analysis

The Dow Index’s rally that began a week prior to the new year is at an indecisive stage confirmed by the formation of a doji candlestick after a series of bullish candles on the weekly chart. Though the main trend remains up, a trade through 24860 will signal its resumption, while a trade through 24520 coinciding with the 20-period MA could shift price action to lower support levels.

Support: 24520 / 24460
Resistance: 24700 / 24860

Chart (H4)