Dow Jones Industrial Average (.DJI) Lower on China Tariff Concerns

Dow Jones Industrial Average (.DJI) Lower on China Tariff Concerns

Dow Jones Industrial Average (.DJI) Lower on China Tariff Concerns

The Dow Jones Industrial Average hit its lowest levels of Thursday, with less than an hour left in trade, following a report that President Donald Trump would impose tariffs on $200 billion in China imports. The report from Bloomberg, citing people familiar with the matter, says that the imposition of tariffs could come as soon as next week.

Although tariffs against Beijing had been expected, investors may still be rattled by the suggestion that negotiations between the two economic superpowers may still be hard fought toward a resolution, if one can be reached. The Dow DJIA, -0.53% was down 180 points, or 0.7%, at 25,948, losing ground on the psychologically significant level of 26,000 that the benchmark had reached earlier this week.

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 25,201.76.

The projected upper bound is: 26,447.60.

The projected lower bound is: 25,579.40.

The projected closing price is: 26,013.50.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.

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 81.8082. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 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 63.18. 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 143 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 84. This is not a topping or bottoming area. The last signal was a sell 0 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 7 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERAGE closed down -137.650 at 25,986.920. Volume was 20% below average (neutral) and Bollinger Bands were 4% narrower than normal.

Open High Low Close Volume___
26,099.01026,104.36925,934.80125,986.920 240,442,272

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

Moving Averages: 10-period 50-period 200-period
Close: 25,865.64 25,165.03 24,832.72
Volatility: 8 11 18
Volume: 227,580,560 265,642,672 359,227,168

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 AVERAGE is currently 4.6% 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 volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 34 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