Dow Jones Outlook: Dow maintains negative tone despite Thursday’s Hammer ahead of US NFP data

Slobodan Drvenica Windsor Brokers

DOW JONES

Dow is consolidating within narrow range and low-volume trading on Friday, following sell-off on Thursday, triggered by arrest of Huawei CFO.
The fall found footstep just ticks above previous low at 24246 (23 Nov) ahead of strong rebound, which eased downside pressure.
Thursday’s Hammer could be a signal of stronger recovery, but scenario so far lacks further signals which could be generated on lift above a cluster of MA’s at 25021/25156 zone (20/200/10/30SMA), also 50% of 26087/24255 bear-leg and keeps the downside vulnerable.
Bearish daily techs add to negative outlook, but potential attempts lower need clear break below lows of short-term range at 24246/24085 to end 1 ½ month long range-trading and signal extension of pullback from new all-time high at 26962 (03 Oct).
Markets await fresh signals from US NFP data today (200K f/c vs 250K prev / AHE 0.3% f/c vs 0.2% prev) which could confirm the strength of US labor sector, that Fed chief Powell highlighted in his speech on Thursday.

Res: 25021; 25156; 25387; 25491
Sup: 24703; 24255; 24246; 24085

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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