Wallstreet Wait & See

Asian stock market posted mixed result under several headlines terror in Turkey, Germany, and Switzerland. U.S dollar is also creeping higher in the Asian session. Dow Jones Industrial Averages advance 85 points in the initial trading session, this put the 20,000 points within reach, and the index only needs 34 points more to reach.

Technical Analysis

Dow Jones Industrial Averages (INDU)

Sudden change in volume makes us question the sustainability of current bullish trend. It looks like the situation ripe for a correction, but this situation might also mean the market is under wait & see stance. Though the bear is impatient, no clear indication yet the trend will reverse. We still expect the index will reach 20,000 soon.

Alcoa Corporation (AA)

AA turned bullish when the price blasted through its daily SMA 200. The bullish movement capped at $32.00 and the price found support at $28.75. We expect the price to continue moving inside the range with a bullish bias.

HP Inc (HPQ)

The shares of HPQ fell and reached its bullish trend line once again. This trendline is major trendline, and the bull can expect the price will bounce once again from it. But, there is small indication that the bullish trend might come to an end; the slope of higher high is getting lower and might indicate exhaustion.

Although it is a yellow light, there is nothing to worry yet for the bull, as long as the trendline is not violated.

Other Watchlist

MOS – the price corrected and moved near its daily SMA 200.

LLY – Bearish pin bar formed when the price test SMA 50, not a significant candlestick pattern as the momentum is strong. The price might continue higher.