DOW JONES, DAX 30, HANG SENG INDEX OUTLOOK:Dow Jones Industrial Common rebounded mildly from its 100-Day SMA at 26,900DAX 30 inde
DOW JONES, DAX 30, HANG SENG INDEX OUTLOOK:
- Dow Jones Industrial Common rebounded mildly from its 100-Day SMA at 26,900
- DAX 30 index could consolidate after forming a big bearish candlestick. Bollinger Band widened
- Hold Seng Index (HSI) could kind a bullish “AB=CD” sample
Dow Jones Index Outlook:
Dow Jones Industrial Common index (DJIA) futures are oscillating at Asia open after registering a small achieve in a single day. Considerations stay, nonetheless, over the coronavirus resurgence in a part of the EU, and dwindling hopes for the US fiscal stimulus plan. The US Greenback climbed for a second day to 94.00 – the best degree seen in over 7 weeks. A stronger US Greenback appears set to chill valuable metallic and crude oil costs.
On the calendar, the RBNZrate of interest resolution at 10:00 SGT and US Markit Manufacturing PMI readings to be launched at 21:45 SGT are among the many key occasions at the moment. Learn extra on our financial calendar.
The VIX future time period construction (chart beneath) means that the market is pricing in larger ranges of volatility main as much as the US Presidential Election, with VIX futures peaking in early November and reverting again thereafter.
Supply: vixcentral.com
In a single day buying and selling displayed a reasonably balancedsectoral sample, with data know-how (+1.37%), communication providers (+1.09%) and shopper staples (+0.83%) main, whereas vitality (-1.01%), financials (-0.67%) and supplies (-0.23%) lagged.
Dow Jones Index Sector efficiency 22-9-2020
Supply: Bloomberg, DailyFX
Advisable by Margaret Yang, CFA
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Technically,the Dow Jones discovered some assist at its 100-Day Easy Shifting Common (SMA) line, which is hovering across the 26,900 degree. Regardless of a light achieve final night time, its total momentum seems biased in direction of the draw back, as worth plunged beneath the decrease Bollinger Band two days in the past and shaped a big bearish candlestick. A break beneath then100-Day SMA is prone to open the room for additional losses with an eye fixed on 26,650 – the 23.6% Fibonacci retracement.
Dow Jones Index – Day by day Chart
DAX 30 Index Outlook:
Germany’s DAX 30 additionally registered a big bearish candlestick on Monday, which flags extra turbulence forward. A major widening of its Bollinger Band suggests there could also be extra promoting strain within the days to return whereas the MACD indicator has additionally flipped decisively into the unfavorable territory. The technical observations are according to the elemental image, with a virus resurgence probably halting Europe’s fragile financial restoration.
DAX 30 Index – Day by day Chart
Hold Seng Index Outlook:
Previously 4 weeks, the HSI has trailed its main friends – such because the Dow Jones, Nikkei 225 and DAX 30 – as a consequence of a number of headwinds. Monetary names had been among the many worst performers yesterday, with HSBC (-2.05%), Hold Seng Financial institution (-1.28%) and AIA (-1.09%) main the decline.
Technically, HSI is probably going forming an bullish “AB=CD” sample (chart beneath), with a possible assist degree discovered at 23,300. A agency rebound from the “D” level could sign a possible development reversal. Nevertheless, additional decline beneath the “D” level might probably result in a check of the 23.6% Fibonacci retracement degree at 22,900.
Hold Seng Index – Day by day Chart
Advisable by Margaret Yang, CFA
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— Written by Margaret Yang, Strategist for DailyFX.com
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