Thursday, January 31, 2019

DOWJONES - 31 January 2019


Fundamental Highlights

US Equities soared on Wednesday as the Fed shifted towards a dovish stance, perceived as extreme relative to its recent inclination towards tightening monetary policy which enabled 4 rate hikes in 2018 and its balance sheet reduction. Now the Fed intends to reconsider the pace of these policies weighing on stock markets as they assess how the US economy performs leaving investors elated. Meanwhile the US-China trade talks have yet to be concluded and loom over the markets as investors hope for progress alongside the continuous corporate earnings reports.

Technical Analysis

The Dow surged 1.77% to close above 25000. It surpassed the 24830 mark that has now turned to support, however taking out the resistance at 25080 will sustain the rally and push the index to higher levels around 25150. The RSI has reached the overbought threshold suggesting the price may retreat to the 24890 level before continuing the upside move.

Support: 24890 / 24830
Resistance: 25070 / 25150

Chart (H4)