Bottom line: Dow Jones long term structure continues to remain bearish against 29600 mark. The indice is holding well below its recent swing highs around 27700 levels and bears might be poised to resume lower towards 18200 levels.
Fundamental Outlook:
Dow Jones rose only marginally higher (+0.39%) to close at 26842 yesterday. The indice has lagged behind SPX500 which has surged through 3281, above its June 09 high. Hang Seng and Nikkei trade lower by -0.40% as we prepare to publish the update.
Risk appetite and Global Indices might be facing a major selloff as Geo-political tensions keep rising. UK seems to have joined the list against China off late. The country might ban Chinese Telecom provider Huawei, as confirmed by UK Prime Minister Boris Johnson.
EU summit was successful in drawing a EURO 750 billion stimulus package over the COVID-19 pandemic, yesterday. This has helped EURO to rise through 1.1500 mark, against the US Dollar yesterday. It remains to be seen if risk assets can continue their dominance over USD.
AUDUSD also managed to hit fresh highs around 0.7152 as we prepare to publish today’s updates. The risk related currency pair rose alongside Global Indices. It might come under renewed selling pressure as traders might be looking to take profits. It might be good to keep an eye of Global Equity markets as well.
Technical Analysis:
Dow Jones has been holding well below its June 09, 2020 highs around 27700 levels. Unlike SPX500, which has print yet another high around 3280 yesterday, the indices has remained subdued indicating a potential bearish divergence. Bears remain poised to take control from here.
Dow Jones drop from 29600 through 18200 was an impulse wave. Ideally, an impulse wave is followed by a corrective wave in the opposite direction. The indice had rallied from 18200 through 27700 as a corrective zigzag , A-B-C.
Dow Jones had rallied up to the fibonacci 0.786 retracement of the earlier drop, before reversing lower again. Immediate resistance remains at 27700, followed by 29600, while support is seen around 23000 levels respectively. A drop below 23000 will confirm that a meaningful top is in place around 27700.
Most traders might remain poised to hold short positions, with protective stops around 29600 levels. The projected targets point towards 18200 levels in the next several weeks to come. Only a break above 29600, would change the bearish structure.
Prepared by
Harsh Japee, Technical Analyst.
Dow Jones Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
