Dow set to end eight days decline

U.S stock market futures traded upside after long strained decline which attributed to trade fears. Nevertheless, the index set to close the week on the negative side. Oil is the focus of the market today as OPEC has reached agreement on oil production levels.

OPEC set the target output of $1 million barrels per day (bpd), but analysts think the oil cartel might not reach the target and could only provide 2/3 of the target. Venezuela crisis and Iran sanction by the U.S both are the reasons behind OPEC boosting the oil output. We might see strength in oil continue until the end of the year.

Asian & European Stock market

Asian stock market closed mixed amid OPEC and trade concern. Nikkei closed down 176.21 points (-0.78%) to 22,516.83, Shang Hai Composite closed up 14.14 points (+0.49%) to 2,889.95 and Australia ASX 200 down 6.90 points (-0.11%) to 6,225.20. European stock market painted green after Europe ended assistance to Greece. DAX Germany up 0.49%, FTSE UK up 1.31%, and Euro STOXX 600 up 0.89%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA drop below 25,000 continue and almost reach the daily SMA 200. The selling might stop today and reverse as market clear out position before the week close. We might see the index close near the daily SMA 50 and set up to test 25,000 in the coming week.

American Express (AXP)

AXP formed a bullish ascending triangle pattern on its daily chart with the top around $102 – $103. The share prices currently sit at the daily SMA 200 and the bottom of the triangle. It is one of the high odds situations for the bull and traders could place long position. As long as there is no consecutive close below daily SMA 200, AXP expected to continue trading inside the ascending triangle pattern.

FedEx Corp (FDX)

FDX slumped after the earnings announcement, and the share prices follow the movement inside the bullish channel. If FDX could bounce from the bottom of the channel, then the share prices might continue moving up and reclaim losses after earnings result.

YELP Inc (YELP)

YELP is a bearish alternative for today trading. The bear is in control after the share prices fell below daily SMA 200. There is a test in the previous day and result in bearish pin bar or a bearish engulfing pattern. The rejection from SMA 200 also coincides with channel rejection. If the bearish pattern confirmed, then YELP should continue further lower and test bottom of the channel.