Bottom line: Dow Jones long term structure continues to remain bearish against 29600 resistance. The indice might be looking to test 27000/100 levels before reversing lower towards 18200, going forward. Bears are expected to remain in control from here on.

Fundamental Outlook:

Dow Jones has managed to rally over +1.5% this week closing at 26828 yesterday. SPX500 is up over +1.0% while NASDAQ has managed to print new highs around 11119 today, up over +1.5% this week. Equity markets have been on the rise (marginally though) on hopes of another round of stimulus package from the Fed. As we prepare to publish, there is no deal on the next stimulus in the US.

COVID-19 infections remain a threat, though infections are on the decline in the US states of California and Florida. Europe countries are reporting a surge though it may not be as critical yet. US and China tensions continue to rise, with TikTok sale deadline set to September 15.

AUDUSD has managed to recover after dropping towards 0.7076 early this week. The exchange rate had rallied back to 0.7190 before pulling back. AUDUSD might remain under pressure amidst rising COVID-19 infections in Melbourne (Victoria State) and rising US-China tensions.

Technical Analysis:

Dow Jones might be pushing higher towards 27000/100 levels before turning lower again. Ideally, the indice should remain below 27600/700 high that was print in June. Bears should remain poised to push lower towards 18200 levels in the coming weeks.

Dow Jones had produced an impulse drop from 29600 through 18200 in February-March 2020. Ideally, an impulse drop is followed by a corrective rally. Dow Jones produced an impressive counter trend rally between 18200 and 27600 levels respectively.

Also note that the corrective rally had reached up to fibonacci 0.786 retracement of the earlier drop. High probability remains for a bearish reversal and prices should stay below 27700 ideally. Immediate support is just below 25000 and a break lower should be encouraging to bears.

Most traders might continue holding short positions and add further if prices manage to reach 27000 mark. The protective stop should go above 29600 for now, while projected targets point below 23000, 20000 and 18200 respectively.

Prepared by

Harsh Japee, Technical Analyst.

Dow Jones Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。