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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Very good assessment, I fully agree.
ReplyDeleteVery helpful and insightful analysis, excellent.
ReplyDeleteGreat daily note as always, thank you!
ReplyDelete