US Stock market Technical Analysis January 29, 2019

Stock market cautious before The Fed

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U.S stock market caught in a landslide by the grim result from Caterpillar (NYSE: CAT) and revenue adjustment by Nvidia (NASDAQ: NVDA). Dow Jones Industrial Averages shed 208.98 points. Today, traders and investors will focus on consumer confidence data with reading expectation of 125.0. On the other hand, tomorrow The Fed interest-rate decision also will influence today sentiment.

We expect there will be no major movement in today trading session. If the Fed decides to leave the tightening game which planned last year then we might see a rally in the stock market. Earlier in the Asian session, trade tension between U.S-China refueled after the U.S Department of justice file criminal charges against Huawei.

Asian & European Stock market

Asian stock market mostly lower. Nikkei up 15.64 points (+0.08%) to 20,664.64, China stock market down 2.72 points (-0.10%) to 2,594.25, and Australia ASX 200 down 31.40 points (-0.53%) to 5,874.20. European stock market, on the other hand, traded higher on Brexit debate. DAX Germany up 0.14%, UK FTSE up 1.51%, Euro STOXX600 up 0.72%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index upward movement almost reaches the daily SMA 200 in previous Friday after President Trump reopens the government. It seems the market will watch the index reaction near SMA 200 while waiting for The Fed interest-rate decision, job data and development of trade talk between U.S-China.

Technically, DJIA might be rejected from the resistance SMA 200 and continue its downtrend.

Allegheny Technology Inc (ATI)

The situation of ATI share prices is similar to the situation of DJIA. The share prices currently challenging daily SMA 200 and the top trendline. If it is rejected from the resistances then traders could target level around $25.00 as a downward target. Another support level to consider is the bottom trendline. Overall, it seems the share prices ranging inside a triangle pattern.

Colgate-Palmolive (CL)

CL trend is bearish as seen on the chart. The share prices currently moving upward after previously making higher high. There is no higher high printed on the chart yet and CL need to surpass cluster of resistances near daily SMA 200 to print higher high. Short position near the averages is favored. However, if a breakout happens, traders could use the averages as a place to look for long positions.

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