Dow Jones Industrial Average (.DJI) a trade deal could reduce concerns about growth and allow the 2019 rally to continue

Dow Jones Industrial Average (.DJI) a trade deal could reduce concerns about growth and allow the 2019 rally to continue

Dow Jones Industrial Average (.DJI) a trade deal could reduce concerns about growth and allow the 2019 rally to continue

Stocks rose on Wednesday as investors grew hopeful that Chinese and U.S. trade authorities would reach an agreement before a deadline in early March.

The Dow Jones Industrial Average climbed 117.51 points to 25,543.27 as Walgreens Boots Alliance and 3M outperformed. Wednesday also marked the Dow’s second straight day of gains. The S&P 500 gained 0.3 percent to 2,753.03, led by gains in the industrials and energy sectors. The Nasdaq Composite advanced 0.08 percent to 7,420.38.

Energy stocks got a boost from higher oil prices. The S&P 500 energy sector gained more than 1 percent, led by Newfield Exploration, Apache and Devon Energy, as West Texas Intermediate futures climbed 1.5 percent to $53.90.

President Donald Trump suggested Tuesday that he might be open to postponing the current deadline of early March so that both sides can reach a deal.

“Markets always assumed the March 1 trade deadline was flexible, but this just confirmed it,” Tom Essaye, founder of The Sevens Report, wrote in a note. “Bottom line, the fundamentals are roughly balanced right now as there is optimism that a trade deal will get done.”

“Looking ahead, a trade deal could reduce concerns about growth and allow the 2019 rally to continue,” Essaye added.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 24,649.76.

The projected upper bound is: 26,572.04.

The projected lower bound is: 24,522.67.

The projected closing price is: 25,547.36.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 73.2336. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 66.31. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 33 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 141.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 29 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 117.510 at 25,543.270. Volume was 27% below average (neutral) and Bollinger Bands were 32% narrower than normal.

Open High Low Close Volume___
25,480.85925,625.94925,480.85925,543.270 263,327,712

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 25,240.28 24,251.21 25,021.37
Volatility: 12 28 20
Volume: 306,303,616 366,573,728 324,294,784

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

DJ INDU AVERG gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DJ INDU AVERG is currently 2.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .DJI (mildly bullish). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 22 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH