Monday, April 29, 2019

DOWJONES - 29 April 2019


Fundamental Highlights

The Dow Index recovered some of its recent losses as it rose 0.3% to end at 26543 on Friday. Economic data aided in offsetting downbeat corporate earnings from Dow members as US 1st quarter GDP showed an unexpected 3.2% growth rate while Michigan consumer sentiment came slightly above its estimate. Today, the US publishes PCE figures, personal income and spending data while corporate earnings should hold greater impact on price action. The week ahead presents big market drivers as a new round of US-China trade talks begin on Tuesday and the Fed’s monetary policy decision and statement will be of interest given the US’s Q1 GDP’s strong print.

Technical Analysis

Despite having broken the trend-line support off of March’s low due to weakening bullish momentum, The Dow Index remains within a rising trend channel for the short-term as it remains supported by the 20-day MA around 26340. The price managed to bounce off of the support at 26340 towards the 20-period MA around 26500. Sustaining price action above the 26500 level would indicate buying pressure and target resistance at 26680 acting as a barrier for further advances towards the record high at 26940. Alternately, holding below the 26500 level would indicate selling pressure with a drop below 26340 to mark further losses towards 26260.

Support: 26340/ 26260
Resistance: 26590/ 26680

Chart (H4)