Dow set for the second day winning
The stock market in U.S prepares for the continuation of Monday bounce following the gain in Asian and European stock market today. Overall, there is no economic news which will influence the market. The market attention tilted to North Korea – U.S rising tension also ECB speech tomorrow. Expect low volatility trading proceeding the week while big names prepare for Jackson Hole meeting this weekend.
U.S dollar index gained after Monday losses, and other major currencies retreat followed by commodities and precious metals. Nikkei down 9.29 points (-0.05%) to 19,383.84, China Shang Hai Composite up 4.12 points (+0.13%) to 3,291.03, and Australian ASX 200 up 24.27 points (+0.42%) to 5,750.12.
Technical Analysis
Dow Jones Industrial Averages (INDU)
DJIA drifted lower on Monday trading session and flipping between negative-positive zone until it settled higher. The index reached the daily SMA 50 and got an initial bullish reaction. Tuesday trading session might open higher as DJIA futures pointed up 45 points before market open and might close above the Monday high. If the price closed higher, it would confirm bounce from the daily SMA 50.
Delta Airlines (DAL)
Delta airlines share prices slide hard below its daily SMA 200 and switch the overall outlook into bearish. Fortunately, the price found support near the $47.00 support level. Overall, the outlook stays bearish, and the price bounce from support limited up to daily SMA 200. Traders could observe the reaction between $47.00 – daily SMA 200 to place either short or long position.
First Solar (FSLR)
FSLR newly bullish trend established after the share prices flipped above its daily SMA 200. The price then continues higher until it reached $50 resistance. There has been two test on the resistance and FSLR was rejected from it. Below the resistance level, there is trendline support and the daily SMA 50 which might provide support for the share prices from further decline. Traders might want to stay sideline and jump in long position after bullish formation appear.
Other watch lists
EBAY – sliced through its daily SMA 100 from above to below it. Looks bearish and might continue lower.
GES – Slipped below its daily SMA 200 and channel (shown on previous day analysis). If the price return above the averages it will create fake break situation and GES could advance higher.