DJIA: current dynamics and market expectations
09/23/2019
US stock indices maintain a long-term positive trend. In mid-September, DJIA again approached the level of absolute and annual highs near the 27400.0 mark. However, a breakdown of this resistance level did not occur and the DJIA again declined.
On Friday, it became known that the Chinese trade delegation canceled the planned visit to US agricultural enterprises after President Donald Trump said he was not interested in a “partial agreement” with China.
This information caused a fall in the stock market and a rise in price of protective assets. Gold rose again in price, and the yield on 10-year US bonds fell to 1.754% from 1.777% on Thursday. The decline in US stock indexes on Friday led to the fact that they closed last week in negative territory.
In the first half of the European session on Monday, DJIA futures traded in the range between the short-term resistance level of 27010.0 (EMA200 on the 1-hour chart) and support level 26670.0 (EMA200 on the 4-hour chart).
Breakdown in one direction or another will determine the direction of further movement of the DJIA.
In case of resumption of decline, the targets will be the support level of 26030.0 (EMA200 on the daily chart), 25270.0 (local lows and the bottom line of the ascending channel on the weekly chart), 24600.0 (Fibonacci level 23.6% of correction to the DJIA growth wave, which began in February 2016 from the mark of 15500.0).
A return to the zone above the resistance level of 27010.0 will indicate a restoration of the bull trend and will speak in favor of the resumption of purchases.
From the news for today it is worth paying attention to the publication at 13:45 (GMT) of the Procurement Managers Index (PMI) for the US manufacturing sector in September (according to the forecast it will be 50.3, as in August). If the data turn out to be better than the forecast, then US stock indices will rise. Data is worse than forecast and below 50 will negatively affect US stock indices.
Support Levels: 26670.0, 26030.0, 25270.0, 24600.0
Resistance Levels: 27010.0, 27400.0
Trading Scenarios
Buy Stop 27030.0. Stop-Loss 26650.0 Take-Profit 27400.0, 27500.0
Sell Stop 26650.0. Stop-Loss 27030.0. Take-Profit 26030.0, 25270.0, 24600.0
*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com
09/23/2019
US stock indices maintain a long-term positive trend. In mid-September, DJIA again approached the level of absolute and annual highs near the 27400.0 mark. However, a breakdown of this resistance level did not occur and the DJIA again declined.
On Friday, it became known that the Chinese trade delegation canceled the planned visit to US agricultural enterprises after President Donald Trump said he was not interested in a “partial agreement” with China.
This information caused a fall in the stock market and a rise in price of protective assets. Gold rose again in price, and the yield on 10-year US bonds fell to 1.754% from 1.777% on Thursday. The decline in US stock indexes on Friday led to the fact that they closed last week in negative territory.
In the first half of the European session on Monday, DJIA futures traded in the range between the short-term resistance level of 27010.0 (EMA200 on the 1-hour chart) and support level 26670.0 (EMA200 on the 4-hour chart).
Breakdown in one direction or another will determine the direction of further movement of the DJIA.
In case of resumption of decline, the targets will be the support level of 26030.0 (EMA200 on the daily chart), 25270.0 (local lows and the bottom line of the ascending channel on the weekly chart), 24600.0 (Fibonacci level 23.6% of correction to the DJIA growth wave, which began in February 2016 from the mark of 15500.0).
A return to the zone above the resistance level of 27010.0 will indicate a restoration of the bull trend and will speak in favor of the resumption of purchases.
From the news for today it is worth paying attention to the publication at 13:45 (GMT) of the Procurement Managers Index (PMI) for the US manufacturing sector in September (according to the forecast it will be 50.3, as in August). If the data turn out to be better than the forecast, then US stock indices will rise. Data is worse than forecast and below 50 will negatively affect US stock indices.
Support Levels: 26670.0, 26030.0, 25270.0, 24600.0
Resistance Levels: 27010.0, 27400.0
Trading Scenarios
Buy Stop 27030.0. Stop-Loss 26650.0 Take-Profit 27400.0, 27500.0
Sell Stop 26650.0. Stop-Loss 27030.0. Take-Profit 26030.0, 25270.0, 24600.0
*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com