News & Analysis

Eightcap CFD technical insights 20/12/17

Dec 20, 2017 | CFD News

Tax plan continues to govern equity market sentiment. A delay due to changes last night held up the vote and lead to a softer session in the U.S. With the new changes the vote is expected this week. Is the plan price in? Have equity markets overextended on hope? Or will the fact continue to drive this Stella bull run?

US30 – as mentioned tax reform is the key driver in U.S markets. We see a short-term range setting up atm. The market has developed a fast trend from the main trend-line. One thing that comes to mind is the speed of this rally driven by hope. Once the fact arrives will we continue to see an extension to this trend? On it’s pass we would expect a higher drive but it’s the post drive that has us most interested at this point. Normally at some point trends do like to test the main line. For now the US30 remains in a strong bull trend and selling this trend without confirmation would be a risky play atm.

GER30 – made a breakout from it’s range this week in a very strong single day rally. We would like to see the range high become support for any future tests. With the vote pending and today’s pre-market is looking strong we would like to see 13,200 hold as a short term low. With further bullish sentiment a test of 13,315 looks to be next possible step for buyers.

AUS200 – has reversed last nights fade and has made new 2017 highs today. 6051 has emerged as a buyer bounce point. After Monday’s breakout sellers failed to take price below that level. Buyers today have strongly rallied from this level. This level has confirmed and is significant on the short-term. As with the GER30 the AUS200 will be influenced by US30 and it’s underlying driver, the current tax reform. While bias remains bullish we would think there could be further highs made in 2017.

Good Trading from Eightcap.

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