The markets were shaken about late on Monday when Trump adviser Navarro alluded to the fact that the US-China trade deal was over. This was quickly addressed to be false which saw U.S markets regain all losses from the news and the Nasdaq reach new all-time highs.
The Asian markets looked firmer on Wednesday reaching a four-month high as the reopening of the global economy has seen investor optimism at new highs. Record coronavirus infections in the U.S has seen safe havens like gold on the increase along with the Dollar’s decline.
In this note you will find the technical analysis from our market analyst, Barry Dumas:
The Wall Street 30 Technical Analysis
The price action on the Wall Street 30 has been in limbo since the selloff after the FED announcement which has seen price consolidate sideways the last couple of days. We have two points of interest (pink lines) which needs to be taken note of.
The resistance at 26721 a previous target level, if broken could see another leg higher. The key level to watch would be the 61.8 Fib level and the 24545 support, if broken could see more pain to the downside.
Technical points to look out for on the Daily Wall Street 30:
- The Wall Street 30 price action needs to close above the 26721 resistance, our previous target level to target the third possible target at 28123.
- The 50-day SMA (blue line) and the 61.8 Fib level is acting as support to the price action and needs to be watched closely for failure in the future.
- The Relative Strength Index (RSI) did move lower after reaching over bought levels and is still trending higher.
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 24th 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.