News & Analysis

Eightcap CFD technical insights; Indices holding their lines 9/04/18

Apr 9, 2018 | CFD News

Looking at Friday’s session on stock indices, some might see this as a little overdone in terms of bad news. Friday started with news president Trump was recommending a further 100 billion in tariffs for Chinese imports. This went down like a lead balloon, stock indices sunk. Moving on to Friday night’s session the US30 in particular has hit very hard by weaker than expected jobs data and further commitment from Fed Chair Powell rates will continue to be raised this year despite the current uncertainty.

Have we reached a point of over exhaustion for negative news? Is a lot of it slowly starting to become priced in? Yes if there’s another big surprise markets should move lower again. Tariff wise; how much more can be expanded upon without declaring an outright trade war? Three rate hikes are common knowledge now. Looking below, indices despite pressure continue to show signs of buyer support.

US30 – broke trend but returned inside on Friday’s selling. A higher low has now set-up with two zones of support still in play. Buyers have a 130 point lead at this point. If buyers can hold 23,920 tonight counld we could see further gains springing off Friday’s failed low from the support zone?

GER30 – dipped and rebroke the downtrend line, support low seen at 12,170. If buyers can continue to hold this level we could see a confirmed break of the downtrend. This would also include a break of the next resistance point at 12,330 – 12,367. Currently, price is trading 75 points higher. Buyers testing Friday’s opening price which is a good early sign.

JPN225 – has made three higher steps with a strong trend break last week. Friday’s session lower made a failed low and new higher low. Today we’ve seen a break above the red resistance point. Giving more strength to the HL. If buyers can continue to hold the breakout could we see a new leg up to test 21,840?

Good Trading from Eightcap.




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