Dow Jones Industrial Average (.DJI) investors remained cautiously optimistic Washington and Beijing could move forward on a trade deal

Dow Jones Industrial Average (.DJI) investors remained cautiously optimistic Washington and Beijing could move forward on a trade deal

Dow Jones Industrial Average (.DJI) investors remained cautiously optimistic Washington and Beijing could move forward on a trade deal

Stocks rose on Tuesday as large tech companies like Apple and Amazon outperformed while investors remained cautiously optimistic Washington and Beijing could move forward on a trade deal.

The Dow Jones Industrial Average gained 256.10 points to close at 23,787.45, posting its first three-day winning streak since late November. The S&P 500 rose 0.97 percent to 2,574.41 as the real estate and communications services sectors outperformed. The Nasdaq Compositeclimbed 1.1 percent to 6,897. For the year so far, the Dow and S&P 500 have risen 1.97 percent and 2.7 percent, respectively. The Nasdaq is up nearly 4 percent in that time period.

Apple shares rose 1.9 percent after CEO Tim Cook tried to assuage some of the concerns plaguing the tech giant. In an interview with CNBC’s Jim Cramer, Cook said Apple’s “ecosystem has never been stronger. ” Apple took a beating last week after slashing its quarterly revenue forecast, citing a slowdown in China. Cook also said he feels good about the “real-time ” information he receives regarding the U.S.-China trade talks.

Amazon also gained 1.66 percent, while Facebook jumped 3.26 percent. Netflix and Alphabet also closed higher. These gains add to the so-called FAANG trade’s sharp rise since Dec. 24. Through Tuesday’s close, Facebook shares have surged 15.9 percent since then, while Amazon has rocketed 26.8 percent. Alphabet shares, meanwhile, are up 11 percent in that time period. Netflix’s stock is up nearly 37 percent in that time.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 24,347.80.

The projected upper bound is: 24,931.10.

The projected lower bound is: 22,611.96.

The projected closing price is: 23,771.53.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is 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 89.8893. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 2 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 50.43. 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 8 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 113.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 4 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 256.100 at 23,787.449. Volume was 9% below average (neutral) and Bollinger Bands were 47% wider than normal.

Open High Low Close Volume___
23,680.32023,864.65023,581.44923,787.449 317,423,104

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 23,098.38 24,472.56 24,960.56
Volatility: 43 31 21
Volume: 356,822,784 388,595,392 335,177,824

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 is currently 4.7% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .DJI and have had this outlook for the last 18 periods.

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