Slowing down in momentum

Impressive move by Dow Jones Industrial Averages this past week placed the index at 18,868.69 a little bit under its new record high 18,934. Futures little bit change today with 24 points advance before market open. The market will wait for core retail sales report today on 8.30 AM, and the sales expected to grow 0.5% monthly.

Technical Analysis

Dow Jones Industrial Averages (INDU)

Upward movement in the index is losing momentum as Doji candlestick formed. It does not tell reversal yet as Doji candlestick express indecision in the market. Will it continue to move upward? Or will it pause and reverse here?

Helmerich & Payne Inc (HP)

HP price consolidated near the SMA 200 and formed a bullish engulfing pattern, if the pattern confirmed by a close above the two candle high, we will see new bullish leg.

Visa Inc (V)

The sudden drop in Visa orchestrated by alliances between Visa, Mastercard (MA) and Paypal (PYPL). It is not clear though why the share price drops but it could be exposed to some risk after Trump effect.

Observe how price action plays out near the SMA 200 a sharp break below it will spell big bear while a bounce will provide good risk reward if it followed through above $80

Other Watchlist

HD – bearish engulfing after the price reached SMA 200. More selling pressure expected.

KR –  the price corrected near its SMA 200, watch for bearish candlestick pattern before taking any position.

AMZN – near its SMA 200, worth to watch if bounce happen.