News & Analysis
Eightcap CFD technical insights; Stock Index Junction 07/03/18
Since our last CFD report, we’ve seen some exciting moves from a traders perspective. But it’s been a wild ride if you sit on the investor’s side. The US30 added 1700 points to the top of the recovery rally before sellers took to it post Powell and President Trump’s tariff announcement. Sellers knocked 1500 points off the recovery rally before Monday’s recovery. This morning delivered another shock to the market as rumours surfaced Presidents Thrumbs top adviser Gary Cohn may resign due to the tariffs issue This became reality after the NY session close. This morning open on stock index saw heavy gaps lower as the markets digected this latest devalopment.
This brings major CFD indices to junction points. The GER30, US30 and AUS200 are sitting at levels that if broken really do start to suggest we could be seeing a change in market dynamics.
US30 – 24,300 makes the base of the holding higher low from the first deep leg lower. A break of that level and low sets up a move to the low of the recovery in our opinion. This also put real pressure on the recovery with only the final low to tempt buyers back to return. On the short-term, we have an LH and LL showing that sellers are holding a slight advantage for now. This morning Cohn news may or may not be the decisive factor to send price back to 23,990 low. We would like to see buyers hold in the current area.
GER30 – has run deeper than the US30, sellers have broken the recovery rally. Sellers made a new shot at the lows just missing a new yearly low. Buyers made what looked like a strong statement posting a strong close after move lower. 11,930 stands as strong and final support level. A break and we see sellers have another shoot and breaking 11,692 low. If buyers continue to hold above this level we are looking for further support to develop.
Good Trading from Eightcap.
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