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Wall Street Wednesday Technical Trade Note – 13 February 2019

/
Barry Dumas
Wall-Street-Wednesday

With a second U.S Government shutdown avoided thanks to an agreement between the Democrats and Republicans on border security, U.S markets rallied on Tuesday.

  • The tentative agreement was reached in the attempts to avoid yet another U.S Government Shutdown waiting in the wings. Around $1.5 Billion have been agreed upon for border security which is far less than the $5.6 Billion that President Trump

Renewed optimism around the trade negotiations also added to the momentum in the U.S markets as President Trump stated that he might extend the 1 March deadline to reach a deal with China.

Economic data that might affect the price action today:

  • Consumer Price Index (CPI) at 15:30 SAST.
  • Crude Oil Inventories at 17:30 SAST.

Let's have a look at the technical charts for the Wall Street 30:

Wall Street 30

  • Looking back at our previous Wall Street Wednesday note, on the Daily chart we can see that the price action pushed higher from the pullback lower. Currently the price action is finding some resistance just before our target price of 25592.

The Daily chart of Wall Street 30 pushed higher from the current dip mainly due to Fundamental factors like the news mentioned. If we see more positive news around the Trade negotiations between the U.S and China, we might just see the price action push even higher.

  • Take note: If these fundamental factors play out positively, then we might see the price action reach 25991 as a possible second target price. If no trade deal is reached, then we might see the price action move significantly lower to 24841.

Screenshot 2019-02-13 at 12.05.28

Source – MetaTrader5

 

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The 4Hour Chart might just see a short-term pullback as traders lock in profits and wait on economic news to push prices even higher. The price action is still trading well above the 50-day Simple Moving Average (SMA) (Blue line) and 200-day Simple Moving Average (SMA) (Red line). We might see the price action move lower to 25199 as a key support level.

Screenshot 2019-02-13 at 12.06.17

Source – MetaTrader5

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Remember that trading puts your capital at risk. Always trade cautiously and never above your means. 

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