Stimulus might be back on the table before the U.S Presidential election as Nancy Pelosi stated that a bill for a compromise stimulus package is being written.
Hopes of a new round of U.S stimulus saw Asian equities and U.S Futures rise on Wednesday with the Euro zone set to follow suite. Disappointing earnings numbers from Netflix are putting a slight damper on U.S Futures in early morning trade which will be watched closely at the open.
The Wall Street 30 Technical Analysis
U.S stimulus talks are set to continue today, and news of the outcome will absolutely influence U.S markets which should be taken note of today.
The price action did find support at the 28123 level as mentioned in the previous Wall Street 30 Technical Analysis note which needs to hold. A positive outcome with a new round of stimulus could see price move higher from the support level and reach our third target price of 29390. Negative news could see a sell-off to lower levels if the support does not hold.
Technical key areas to keep an eye on - WS30 Daily Chart Timeframe
- The WS 30 price action is above the 28123-support level, which could attract “dip buyers” and push price higher.
- The 50-day SMA (blue line) is also acting as support currently and pointing higher.
- The Relative Strength Index (RSI) is still holding above the 50 level.
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 21st 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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