The market remains cautiously optimistic as the U.S earnings season unfolds with precious metals shining bright in July. An increase in coronavirus cases are putting a damper on U.S Equity Futures in early Wednesday trade with Trump warning that things will get worse before they get better.
In this note you will find the technical analysis from our Market Analyst, Barry Dumas:
The Wall Street 30 Technical Analysis
The market will keep an eye out on the next planned stimulus package set to roll out soon as this might be an opportune moment for the Wall Street 30 and S&P 500 to possibly regain all-time highs.
The price action on the Wall Street 30 Index has been whipsawing around our 26721 (pink line) level of interest which needs to hold to support a move higher as mentioned in our previous WS30 note.
We might see extended periods of volatility during July as sentiment will be driven by company earnings, political factors and COVID-19 pandemic vaccine news.
Technical points to look out for on the Daily Wall Street 30:
- The price action needs to stay above the 26721 level of interest (pink line) which is acting as support now. We might see a short term move lower to the 50-day SMA.
- The 50-day SMA (blue line) is still pointing higher and acting as support to the price action and now also remains an indicator of interest to keep an eye on.
- The Relative Strength Index (RSI) has moved above the midpoint (50). But we might see it move lower after the trendline pullback.
Chart Source: Wall Street 30 Daily Timeframe - GT247 MT5 Trading Platform
Take note: The outlook and levels might change as this outlook is released prior the current day (Wednesday the 22nd of July 2020) 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.
Disclaimer:
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.
