Friday, March 30, 2018

Will the weakness continue on the Dow Jones?


The Dow Jones has been pressured to the downside, primarily by the actions of Donald Trump. First, the US president imposed additional tariffs on steel and aluminum imports that included China and other Chinese products. That caused the stock market to drop. Secondly, Trump started to criticize the way Amazon uses the US Postal Service to deliver its products and that also caused the stock market to fall, not only in the US, but in Europe and Asia as well. On the daily chart of the Dow Jones we can see that the index has found a good support around the 200 day EMA (blue line) as it did at the beginning of February. Now the index has tested the 200 day EMA approximately five times and that is a sign that the instrument may continue dropping. To the downside, the next support level could be the 23000 and to the upside, the 25000 may act as support, given a bullish breakout of the 24000 level.



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