The U.S earnings season starts this week with much anticipation as U.S Banks start reporting their third quarter earnings this week.
J.P Morgan and Citi beat expectations yesterday but that did not do much to help push markets higher after some of the COVID-19 vaccine trials were halted. Asian equities moved lower this morning with commodities like oil also taking strain.
The technical analysis and charts are contained further within this note.
The Wall Street 30 Technical Analysis
The price action broke through the 28123 resistance level mentioned in our previous Wall Street 30 Technical Analysis note which could act as support for higher prices.
We might expect prices to be muted while stimulus talks pick up again and if more negative vaccine news comes through ahead of the U.S Presidential elections. This might see the 28123-support level come into focus supported by the 50-day Simple Moving Average of price.
Technical key areas to keep an eye on - WS30 Daily Chart Timeframe
- The price action is above the previous resistance level of 28123, which will be looked at for support to the price action.
- The 50-day SMA (blue line) is pointing higher and is expected to act as support if the price action moves lower.
- The Relative Strength Index (RSI) is still holding above the 50 level.
- Volume has also moved lower which might signal a move in either direction is on the cards in the near future.
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 14th 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.
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