Iran Sanction, Powell speech and U.S-China talk under focus this week

The global stock market is pulling back after the U.S implemented sanction against Iran. The sanction regarded by the Iranian government as permanent closure for diplomacy between both countries. We might see further roller-coaster in the stock market as the instability in the geopolitical situation will grow.

Today, traders and investors will focus on Jerome Powell speech. The speech takes place after the previous week FOMC meeting. We might get a new clue on the Fed future guidance on interest-rate. This week, the market also under focus on G-20 meeting where President Trump and China’s Xi Jinping will hold trade talks to settle trade war.

Asian & European Stock market

Asian stock market mostly lower. Japan’s Nikkei down 92.18 points (-0.43%) to 21,193.81, China stock market down 26.07 (-0.87%) to 2,982.07, and Australia ASX 200 down 7.40 points (-0.11%) to 6,658.00. European stock market is also lower. DAX Germany down 0.04%, UK FTSE up 0.03%, Euro STOXX600 down 0.10%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA on the verge of printing new all-time high and it might happen soon. The index direction is upward after the Fed dovish announcement and the situation should continue at least until the next FOMC meeting. A short position in equity might not be a good option for now.

AmerisourceBergen Corporation (ABC)

ABC manages to climb above daily SMA 200 and currently in a correction phase. The share prices move down and looks will reach the daily SMA 200 soon. Traders could prepare for long positions when the share prices tested daily SMA 200 and produce a bullish pattern.

Spotify Technology (SPOT)

SPOT share prices recently climbed above daily SMA 200. In the previous day, the share prices tested the level near SMA 200 and bounced from it. We might see bullish continuation and expect SPOT to print further higher high on its daily chart. Long positions are best taken near the daily SMA 200.