What a difference a week makes, the Dow Jones reached a new record level and cracked 30 000, the Trump administration cleared the way for Biden while vaccine news continues to lift investors outlook.
Markets reached a peak in early Wednesday trade as global sentiment reaches new highs after a great month for risk assets come to an end. Crude oil reached levels last seen in March, Crypto is making a comeback while Gold lost some of its lustre.
The Wall Street 30 Technical Analysis
We did indeed see some profit taking over the last week as mentioned in our previous Wall Street 30 (WS30) technical note followed by a rally to see the WS30 at all time highs. The 28902-support level held firm which saw price quickly rebound to new highs.
The price action on the WS30 needs to close above the 30117-resistance level to initiate new target levels higher. We might expect a short term move lower with profit taking high on the priority list and a move higher supported by volume as Industrials become the flavour of the month.
- The price action on the WS30 needs to close above the 30117-resistance level and preferably re-test the level to support another leg higher.
- The 50-day SMA (blue line) is well below price and pointing higher and below price which supports the continued move higher.
- The Relative Strength Index (RSI) is below overbought levels but well above the 50.
- Volume is moving lower which could signal a price action move is coming, which could be in either direction.
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 25th 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.
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.