Record day for the Nasdaq after a two week push higher in the equity markets not to forget the much-needed boost from a stellar rise in the U.S jobs number. Asian markets were higher on Wednesday morning reaching a new three month high while U.S futures inched higher.
All eyes will turn to the U.S Federal Reserve (FED) interest decision tonight at 20:00 SAST which is widely expected to remain unchanged. Volatility is expected tonight if the FOMC statement leans toward a more hawkish outlook going forward which might see the U.S Dollar gain momentum.
In this note you will find the technical analysis from our market analyst, Barry Dumas:
The Wall Street 30 Technical Analysis
The market rallied after the NFP report showed a surprise and unexpected rise in U.S unemployment and the Wall Street 30 was no exception. The Index hit our second target price which was highlighted in our U.S. Non-Farm Payrolls (NFP) release – 5 June 2020.
Technical points to look out for on the Daily Wall Street 30:
- The Wall Street 30 price action has reached our second target price of 26721 after the NFP jobs report was released. This level will be watched closely for a support to the price action.
- The 50-day SMA (blue line) is pointing higher supporting the momentum higher.
- The Relative Strength Index (RSI) has reached overbought levels but this is in no way a signal to go short as overbought levels can continue for weeks at a time.
- If the FED statement at 20:00 SAST tonight is perceived as positive, then we might see another leg higher to our third possible target price of 28123. If not, then our previous target prices will become support levels to watch.
Chart Source: Wall Street 30 Daily Timeframe GT247 MT5 Trading Platform
Take note: The outlook and levels might change as this outlook is released before the current days (Wednesday 10th of June 2020) U.S Market open.
Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.