The “Tweet Storm” has returned and U.S markets reacted in the sharpest drop in two weeks, after U.S President Trump cancelled talks with Democrats on the stimulus plan. The president’s Tweet stated that negotiations on coronavirus relief will stop until after the elections.

Asian Markets shrugged off Trumps tweets and the MSCI’s broad based index of Asia Pacific shares gained 0.4% to a two-week high while U.S Futures gained momentum Wednesday morning.

The Wall Street 30 Technical Analysis

The price action stayed above the 27155-support level and as discussed in our U.S. Non-Farm Payrolls (NFP) note, price had to move higher to negate the formation of a downtrend.

Price gained momentum after positive stimulus news last week which saw the price action rise to our 28123-resistance level, which needs to be crossed for another leg higher.

If the market cannot shrug off President Trumps outlook and comments on stimulus, then we might see the price action back at the 27155 support soon.

Technical key areas to keep an eye on - WS30 Daily Chart Timeframe

• The price action needs to close above the 28123-resistance level to support a move higher to our third possible target price of 29390.
• The 50-day SMA (blue line) is supporting price currently and pointing higher.
• The Relative Strength Index (RSI) has broken out of the downtrend and is above the 50 level which will be watched closely.
  
  

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 7^th of October 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.