- December 8, 2019
- Posted by: Trading
- Category: Alerts
Equity Analysis and News
Source: Thomson Reuters, DailyFX
Dow Jones | Record High Looms
Since the Dow Jones bounced from trendline support, the index has seen somewhat of an impressive recovery, paring roughly 76.4% of the early week pullback with latest uptick stemming from the strong NFP report. Consequently, the index looks primed for another retest of the record high as the 28000 looms. As we head towards the December 15th tariff deadline, the risk pendulum will likely swing from headline to headline by Chinese and US media outlets. That said, a fresh record high in the index will likely be predicated on the official signing of a US-China phase 1 agreement before December 15th. Outlook remains supportive for equity markets for now.
Dow Jones Price Chart: Daily Time Frame (Nov 18 – Dec 19)
FTSE 100 | General Election in Focus
The FTSE 100 has been among the underperforming indices throughout the week, dropping 1.7%. Having lost support from the 200DMA, the index proceeded to fall towards the low end of its recent range. That said, with a much-needed bounce back from the 50% Fibonacci retracement (7116), which also roughly coincides with the rising trendline from the Dec’18 low, eyes are for a close above 7261 to confirm an interim bottom in the index and make another march towards key resistance at 7440. Of note, UK assets are likely to see a volatile week amid the UK general election.
FTSE 100 Price Chart: Daily Time Frame (Nov 2018 – Dec 2019)
Chart by IG
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— Written by Justin McQueen, Market Analyst
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