SoftBank’s long squeeze has market participants running to the exits as fears mount while the Japanese bank sheds $15 billion. Markets moved lower over the past three days with Asian shares lower on Wednesday along with a new low in the oil market.

In this technical chart analysis note we take a look at key support areas on the WS30 Daily charts:

The Wall Street 30 Technical Analysis

The U.S market started to show some life Wednesday morning, with the Wall Street 30 Index stalling at the 27155-support level along with the 50-day SMA. These levels need to hold to negate another move lower to the next support level of 25607.

The new tech stock additions to the Dow couldn’t have come at a worse time as the price action nearly reached our third and final target back higher at 29390.

Technical points to look out for on the Daily Wall Street 30:

Prime opportunity for dip buyers or another leg lower? If fear continues to set in, then we may be in for another leg lower (if the support levels do not hold).

• Price action is at the 27155 support and needs to stay above this level to negate another move lower which might not be likely at this point while sentiment is low.
• The 50-day SMA (blue line) is acting as support and needs to hold.
• The Relative Strength Index (RSI) is trending lower and is below the neutral level of 50.

Chart Source: Wall Street 30 Daily Timeframe  - GT247 MT5 Trading Platform

Technical insights – what the Beef is looking at now

The price action is still behaving as anticipated and mentioned in our previous Technical insights but unfortunately price turned around denying us our third target at 29390. If the support at 27155 does not hold, then the short sellers might thrust the price action lower to a possible target of 25163.

This level is the next major support level which also coincidentally coincides with the 61.8 Fib level as a possible support to hold the line for further downside.

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 to the current day (Wednesday the 9, September 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.

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