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Wall Street Wednesday Technical Trade Note – 17 April 2019

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Barry Dumas
Wall-Street-Wednesday

Optimism over the U.S-China trade negotiations coming to an end were abruptly halted as President Trump shifted his sights to the European Union and Japan for the next round of trade tariff talks.

The European Union has given the go ahead for talks to start with the U.S before we see another trade dispute dragging on for months. Trump has also stated that talks should include the agriculture sector, or he would impose tariffs on European car imports.

The United States has raised concerns over its "very large" trade deficit with Japan in the first round of negotiations between the two nations on a new bilateral trade deal. No agreement was reached on individual issues after two days of discussions, Japan's economy minister said, but the two sides discussed trade issues focusing on goods, including farm products, both nations said. – Reuters

Wall Street 30

The indicis have been pushing higher over the last two trading sessions an might continue today as China’s GDP number surprised to the upside. The Q1 growth unexpectedly increased 6.4% from the 6.3% expected by analysts.

Some technical and fundamental points to look out for:

  • The ascending triangle technical pattern is playing out and heading higher as discussed in our previous two Wall Street Wednesday Technical Trade Note.
  • The price action is trading above the 26298-resistance line which in turn might act as support if the price action moves lower.
  • Price action is still above its major moving averages with the 50-day Simple Moving Average (blue dotted) moving higher.
  • The Relative Strength Index (RSI) has some way to go to reach over bought levels at the 70 parameter which might indicate the price target at 26824 is in reach.

WSLMLM GT247 Bloomberg

Source – Bloomberg


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.

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