News & Analysis

Stocks showing a flicker in today’s session, but will it last?

Dec 11, 2018 | CFD News

Stocks have been in the dumps for a good period of time. Multiple global issues continuing to hurt buyer confidence and sentiment. This week started with a shocker Monday produced deep falls on the US30, GER30 and other indices. The AUS200 and GER30 hit multi-year lows this week. From CFOs being arrested to global growth worries and Apple, stock traders haven’t been short of a reason to sell for the last several months.

Last night, markets made deep low tests that were rejected by buyers, the Dow Jones lost over 500 points in last night’s session before buyers cut back in reversing the session, could this be a trigger? Have we seen a short-term exhaustion?

Taking a look at the US30 and GER30 daily charts:

The main thing that stands out on the US30 is last night’s failed low that closed higher, buyers have also set up a support point from 24,240. Tonight’s action so far is interesting as it’s the first session in a little while buyers have started on the backfoot and have reversed the session into semi-confident buying. A new close below 24,300 resumes pressure on the support point. We would like to see buyers hold above 24,400.

The GER30 like the US30 has pulled back for a new test lower setting up a reversal bar today from 10,670. A break below this level resumes seller pressure. We would like to see buyers maintain the 10,770 level.

Good Trading.

All times are AEDT

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