Tuesday, July 30, 2019

DOWJONES - 30 July 2019


Fundamental Highlights

US indices ended mixed on Monday, with the Dow Index being the only one to end with a gain. Nonetheless, it remains directionless as market participants await the Fed’s monetary policy decision and updates on US-China trade negotiations; the two main catalysts for US equities. Today, the US publishes consumer confidence, personal spending report and PCE data, the Fed’s preferred gauge for inflation which should further determine the likelihood of the markets’ anticipated rate cut from the Fed. Moreover the data should influence market sentiment and the FOMC’s guidance on monetary policy. Apart from the data, corporate earnings should impact price action during the day while markets monitor US-China trade headlines.

Technical Analysis

The Dow Index ended modestly higher as it gained 28 points to end at 27221. The price managed to hold above the ascending trend line from June 27th low and traded slightly above the 20-period MA which is separating the upper and lower side of the Dow’s range. Look to a sustained move above the 27220 level to indicate buying pressure while a trade through 27280 will enable the Dow to re-test last week’s highs around 27335/27350. Meanwhile, a trade below the 20-period MA at 27170 would indicate selling pressure with the next target of support at 27100 followed by 27070.

Support: 27170/27100
Resistance: 27280/ 27335

Chart (H4)