- Price action backs away from resistance at 30,333 despite bullish mood
- Upper Bollinger band currently at 30,568
The Dow went up to 30,200 yesterday, gaining 1.86%.
The Dow Jones is up 3.17% from the significant low of 28,726 it hit 18 days ago.
The MACD is significantly above its signal line, which suggests the market is running out of bullish momentum and could revert to a negative outlook as bears regain control. Bollinger band analysis indicates that current price action is approaching the upper band at 30,568, thereby suggesting that the Dow Jones is becoming overvalued. Although the Dow is appreciating today after rising as high as 30,300, price action is now slowing and consolidating around 146.82 points below the 30,333 resistance level.
The Dow Jones is likely to reverse course and start pointing downward in the short term.
Fundamental indicators – United States NY Empire State Manufacturing Index (Oct) released yesterday at 12:30 UTC with a figure of -9.1, while the previous figure was -1.5.
The Dow shows positive signs, other assets are also on par: S&P 500 went up by 2.65% yesterday, and closed at 3,678. ASX 200 went up by 1.72% yesterday, and closed at 6,779.2. Nasdaq is trading around 10,676 after ending yesterday's session at 10,321 (up 3.43% today).
Upcoming fundamentals: United States Crude Oil Inventories projected to come out at 1.55 million — worse than previous data of 9.88 million; data will be released tomorrow at 14:30 UTC.