Vaccine news has been dominating market commentary over the last couple of days but softer U.S Retail sales are putting a slight damper on the economic recovery outlook.
Global Indices were weaker at the start of trading on Wednesday from weaker than expected U.S Retail sales data renewing fears that the rising COVID-19 infections could still mute the recovery.
The Wall Street 30 Technical Analysis
The current weakness on the Wall Street 30 (WS30) and other major Indices could be profit taking when considering the solid 10 day run the markets have been enjoying. The U.S Retail sales data should be revisited after the holiday season to get a clearer picture of the state of the economy before all is declared doom and gloom.
The Wall Street 30 outlook is still positive as industrials have been favoured above “Tech” and we have adjusted our levels of interest on the Wall Street 30 accordingly.
- The price action on the WS30 needs to stay above the 28902-support level which could also support the triangle technical breakout from last week.
- The 50-day SMA (blue line) is pointing higher and below price which supports a move higher.
- The Relative Strength Index (RSI) is approaching overbought levels.
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 the 18th of November 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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