More bullish stamp
Wallstreet outrageous performance slapped the bear hard, and previous day rally could be seen as short squeeze triggering and this lead to three-digit gains in Dow Jones Industrial Averages. Yesterday pattern is the bull’s way to tell the bear when it is charging never stand in front of it. Nevertheless, traders need to stay away and never fight the trend.
Asian market and European market also join the bull party with most of its major indices moving up with exception Shang Hai composite which is down 0.20%. ECB conference on the schedule today and it will create high volatility situation.
Technical Analysis
Dow Jones Industrial Averages (INDU)
The second scenario triggered in the index, the bull charging outside of the current bullish channel. Although it is bullish, traders need to be wary of the index moving further into the uncharted area without any significant correction.
Twenty First Century Fox Inc (FOX)
Recent bullish break and re-test above SMA 200 confirmed by previous day close above the pin bar. The price of FOX expected to continue the bullish trend and clear the $28.30 – $28.50 resistance.
Merck & Co (MRK)
Bearish movement in the stock put the price down below its bullish trend line. It looks like the pessimism in Health sector persist, and MRK also cannot escape the selling pressure. Although the outlook still bearish from fundamental side, we have a technical bounce from the daily SMA 200.
The bounce also forms double bottom pattern, followed by pin bar. If the price can close above the pin bar, it is good indication reversal will happen.
Other Watchlist
PG – the price is moving up back near its daily SMA 200, observe price action near the resistance.
V – bullish close back above its daily SMA 200, might be a chance to add a long position.
BIIB – the price filled its gap and near the daily SMA 200, possible bounce up.