Dow remains firmly in red as political turmoil in the US extends
|DOW JONES
Dow Jones stays under strong pressure on Thursday and extended sharp fall from the previous day to fresh nearly one month low at 20477. The index fell 1.62% on Wednesday, marking the biggest one-day loss since 09 Sep 2016, driven by political turmoil in the US after the story about US president Trump's advisors ties with Russian officials during the campaign broke out. Strong negative sentiment hit stock markets and US benchmarks registered heavy losses. Dow penetrated deeply into thick daily cloud that was acting as good support and retraced 76.4% of 20310/21007 rally at 20477. Near-term focus turned focus lower after yesterday's strong bearish acceleration broke below 20760/21007 consolidation range, formed after repeated failures at psychological 21000 barrier. Daily studies are turning into bearish setup, with today's close below 20576 (broken Fibo 61.8% of 20310/21007) needed to signal further downside, for test of 100SMA/daily cloud base supports at 20455/20437 and possible return to key support at 20310 (19 Apr low) in extension. Some corrective action could be expected as 4-hr studies are strongly oversold and from profit-taking, however, upside attempts were so far very limited, as overall negative sentiment continues to weigh.
Res: 20576; 20660; 20742; 20839
Sup: 20477; 20455; 20400; 20310
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