US Stock market Technical Analysis February 12, 2019

Brewing optimism on U.S-China trade talk

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The market lifted today as U.S lawmaker reached agreement on a tentative deal to avoid a government shutdown. Also, optimism felt in the Asian and European market. The market thinks U.S-China trade talk will yield positive results. The highest possible scenario is: Both countries do not impose new tariff and possibly maintain current tariff. The second scenario is delayed trade talks to assess further details. The less likely scenario to happen is no deal and hostile reaction from both parties.

Currently, DJIA futures up 188 points before market open.

Under Armour (NYSE: UA) and Shopify (NYSE: SHOP) will report earnings before the market open.

Asian & European Stock market

Asian stock market jumped on U.S-China trade talk optimism. Japan stock market up 531.04 points (+2.61%) to 20,864.21, China stock market climbed 18.00 points (+0.68%) to 2,671.89, and Australia ASX 200 up 18.30 points (+0.30%) to 6,079.10. European stock market also follow suit. DAX Germany up 1.25%, UK FTSE up 0.38%, Euro STOXX600 up 0.63%.

Technical Analysis

Dow Jones Industrial Average (INDU)

No movement outside of the consolidation range yet. The index stays below the bearish trendline and above daily SMA 200. DJIA futures currently up almost 200 points as U.S lawmaker reached tentative deal to avoid a government shutdown. Today, DJIA expected to move up and challenge the top trendline, will breakout happen?

MGM Resorts International (MGM)

MGM is worth to watch for bullish positions as the share prices climb above daily SMA 200. There was a pullback to test the broken averages and we might have confirmation of bounce. If the bull could maintain the position above averages then MGM could target $30.00 – $31.00. A breakout above $31.00 will trigger buying toward $33.50 – $35.00 area.

Walgreens Boots Alliance (WBA)

WBA share prices corrected sharply after it reaches a high $86.31. The downward correction broke below daily SMA 200 before pulling back between 23.6%-38.2% Fibonacci Retracement. Overall, we have WBA share prices movement contained inside the Fibonacci range. Traders could use the moment to enter long at 23.6% retracement and short positions near 38.2% retracement.

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