Wall Street Wednesday Technical Trade Note – 17 October 2018
With the major selloff we saw in international markets last week, the market looks to be set for a rebound? Or is it?
The selloff we saw last week was sparked by renewed trade disputes between the U.S and China as well as the higher bond yields coming into play.
So the big question is? Is this a rebound we are currently seeing in the markets back up to the highs or is this a dead cat bounce?
Looking at the chart of Wall Street 30
Looking at the broader picture we can see the price action found support on (red dotted line) over the last couple of months and moved higher from there. If we see a dead cat bounce the price might mover lower as seen in point 1.) on the chart back to the support line and move higher from there.
Looking at point 2.) if the support does not hold then the price might move lower to a price of 24216 and the 76% Fibonacci retracement level.
Source – MetaTrader5
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