Slobodan Drvenica
Windsor Brokers
The Dow Jones future contract jumped 0.75% after Wall St. opening on Friday, establishing in fresh upside direction after double Doji candles (Thu/Wed) signaled an end of three-day pullback.
Positive news, led by JP Morgan’s upbeat Q1 earnings and Chevron’s multi-billion-dollar acquisition boosted the sentiment in the US stock markets on Friday.
Dow’s short-term action remains strongly underpinned by rising thick daily cloud, as well as strong bullish momentum and daily techs in bullish setup.
Last week’s high at 26506 is in focus as today’s extension retraced over 76.4% of 26506/26059 pullback and break here would open way towards new record high at 26962 (posted on 3 Oct 2018).
However, risk of adjustment before final push through 26506 barrier exists as daily momentum crested and slow stochastic marks bearish divergence.
Improved environment after strong earnings data suggests that dips would be positioning for fresh advance and should find footstep above rising 20SMA (26010), to keep bulls intact.
Res: 26439; 26506; 26683; 26817
Sup: 26138; 26010; 25902; 25711
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.