The start of a downturn in the stock market?
Dow Jones Industrial Averages futures show a negative 66 points before market open and looks ready to lead the U.S stock market down. The market in cautious mode ahead of President Trump and Chinese President Xi Jin Ping meeting on Thursday and Friday. Flight into safe- haven identified as the market bought Japanese Yen and U.S dollar.
Asian stock markets are mostly negative with Japan’s Nikkei down 0.91% and Australia ASX 200 down 0.27%. China stock market closed on Qing Ming festival. Meanwhile, the stock market in European mixed with DAX Germany, EURO STOXX 600 down and FTSE up.
Technical Analysis
Dow Jones Industrial Averages (INDU)
U.S stock market will face heavy resistance at 20,800 and might not make it above the level. The flight into safe-haven and possibility of the shift from low-interest rate environment to higher interest rate will put more weight in the index.
Gold Corp (GG)
Small bullish candlestick formed near the daily SMA 100 where the price found support in the previous test. The trend of gold is positive for long-term which will support the appreciation of price in GG shares. A long position could be taken with tight stop loss order below $14.00. The first upside target of GG is $15.80 and could continue higher with long-term target at $20.00
Other Watchlist
INTC – bearish pattern long legged Doji, observe price reaction.
MO – bullish pattern formation, not a strong one, might continue lower if not triggered.
ACN – the price is near its daily SMA 200, beware of the gap down. Traders might want to stay sideline until strong pattern formed.