Thursday, November 29, 2018

DOWJONES - 29 November 2018


Fundamental Highlights

The Dow Jones surged 600 points yesterday after US Federal Reserve Chairman Jerome Powell hinted interest rate rises could slow. The Fed last raised rates in September based on the strong US labour market conditions and low inflation. The US central bank is expected next month to hike again, for the fourth time in 2018. The bull run was so strong yesterday, that a steep drop in new home sales to their lowest level since March 2016, was shrugged off by traders. New homes sales tumbled by 8.9% to an annual rate of 533,000. Looking ahead, the bulls will be looking forward to a de-escalation in trade tensions between the US and China at the G20 summit.

Technical Analysis

The DJIA soared yesterday breaking back above the 200-Day Moving Average and crossing the psychological resistance level at 25000. This is the biggest single-day gain in over eight months. The market shows strength in the short-term supported by its long-term uptrend. Additionally, ending with a strong close near the high of the day sets a bullish note for today's session. However, the RSI indicates overbought conditions and therefore it is highly likely that we will drop slightly from here.

Support: 25000 / 24300
Resistance: 25275 / 26190

Chart (H4)