Tuesday, April 30, 2019

DOWJONES - 30 April 2019


Fundamental Highlights

US Indices ended slightly higher on the first trading session of the week as markets brace for US-China trade headlines and the FOMC meeting on Wednesday where a change seems far-fetched. On the data front, following Friday’s strong 1st Q GDP Figure, yesterday’s economic data buoyed market sentiment and sent US treasury yields higher. Consumer spending data increased in March and the Core PCE data, The Fed’s main gauge for inflation, continued to ease which supports the Central Bank’s disinclination towards any rate hikes. Today, the US publishes pending home sales and Consumer confidence data which may impact price action alongside corporate earnings reports.

Technical Analysis

The Dow Index was ranging above the 20-period MA showing minimal upward movement as it ended 11 points higher at 26554. The price would have to move above 26590 in order to restore the bullish view and re-test its high at 26680 which remains the barrier for further advances. Moreover, failure to sustain above the 20-period MA may signal further bearish moves with a decline below 26344 required to take the index to the lower support at 26270.

Support: 26460/ 26340
Resistance: 26590/ 26680

Chart (H4)