News & Analysis

Eightcap CFD technical insights: US30 has returned to a level that’s shown buyer rejection.

May 21, 2018 | CFD News

The US-China trade talks continue to have a strong influence on the US30. This morning developments suggested that the trade war is on hold, sending futures markets gaping higher on open.

Treasury Secretary Steven Mnuchin said the prospect of a trade war was “on hold” following an agreement to suspend tariff threats. Mnuchin and Larry Kudlow, who both said the agreement reached by American and Chinese officials on Saturday helped set up a framework to address potential trade imbalances in the future. This has taken the edge off the current trade war worries. Talk continued about measures under which Beijing would import more energy and agricultural commodities from the U.S. in an effort to bridge the $335 billion annual U.S. trade deficit with China.

The US30 which tracks the Dow Jones and Dow Futures opened with a 180 positive gap this morning. Buyers so far have added close to 47 points since open. Price currently sits at an interesting level, 25,000 has stopped buyers on three occasions since the 15th of March. The trade war and interest rate worries have been fueling the rejections. While yields continue to persist the trade, for now, looks to have cooled. So tonight, can buyers break through this level furthering the current recovery trend, or will sellers re-mass and continue to hold their 25,000 level?

Good Trading from Eightcap.

Sources – CNBC




* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.