It is set to be a roller-coaster week with U.S earnings gaining momentum while we await the inauguration of the 46thPresident of the United States.
U.S earnings are piquing our interest as the investment banking giant Goldman Sachs boasts strong Q4 earnings and the FAANG constituent, Netflix impressed with subscriptions.
Its inauguration day and its set to be like no other, it is in with the new (Biden) with troops on the ground and out with the old (Trump) as Presidential pardons are escalated at the eleventh hour.
Biden will be sworn in today as the 46th U.S President and his U.S. Treasury Secretary nominee Janet Yellen, set the markets alight after she advocated for an excessive fiscal relief package.
Asian markets rose to new highs after Yellen’s statements while Equity Futures Indices continue to gain and commodities like Gold and Oil also building momentum.
The Wall Street 30 Technical Analysis
The price action on the Wall Street 30 (WS30) moved lower to test the 30774-support level as discussed in our previous Trading the Wall Street 30 Index in 2021. While elevated volatility remains, the lower levels are not out of the question just yet. We need a daily close above the 31247-resistance level to target our higher possible target price at 31595.
- The price action on the WS30 needs to push higher from here and close above the 31247-resistance level 4H to target higher levels.
- The 50-day SMA (blue line) is above the price action and is acting as resistance to price in the short term on the 4H chart but still well below price on the Daily chart.
- The Relative Strength Index (RSI) is at the midpoint mark and needs to push higher to overbought levels.
- Volume has continued to move lower on the 4H timeframe which could signal a price action move is on the cards in either direction.
Chart Source: Wall Street 4H Timeframe - GT247 MT5 Trading Platform
The outlook and levels might change as this outlook is released during the current days (Wednesday the 20th of January 2021) U.S Market open.
Sources – MetaTrader5, Reuters
Barry Dumas | Market Analyst at GT247.com
Barry has 12 years experience in the financial markets. He enjoys educating clients on trading / investing and providing punchy technical analysis on securities. He currently holds a Wealth Management qualification and is studying towards becoming a Chartered Market Technician® (CMT) designation holder.
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