Profit taking to hit the stock market

After the string of higher high in the U.S stock market indices, it looks like the market ready to take the profit out of the table and bring the index lower. The correction in prices is imminent, and it is better to stay “Flat” until the market turned again.

The only news to watch is the crude oil inventory data. Forecast see a deficit of 3.9 million barrels compared to the previous result of 7.4 million barrels deficit. Crude oil prices traded higher and sat near $63.50 before the news release.

Asian & European Stock market

Asian stock market traded lower after consecutive winning. Nikkei down 61.79 points (-0.26%) to 23,788.20, Shang Hai Composite up 8.24 points (+0.24%) to 3,422.14 and Australia ASX 200 down 39.10 points (-0.64%) to 6,096.70. European stock market also traded lower. DAX Germany down 0.75%, FTSE UK up 0.02%, and Euro STOXX 600 down 0.43%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA traction is up, but a pullback is imminent as the index futures pointed down more than 100 points. If correction happens, it might target 25,000 before it reverses up again.

Delta Airlines Inc (DAL)

The share prices of DAL hit by profit-taking after traded sideways between $55.50 – $57.00. The correction has target between SMA 50 – SMA 200. Traders could use the averages as support level to place long position. Another support to watch is the bullish trendline.

Freeport Mcmoran Inc (FCX)

FCX burst upside since the bounce from its daily averages. The share prices currently down on correction, it might go as deep as $17.00 or lower to $15.60. Traders could use the moment to look for long position when the share prices hit either level.