Flat start for U.S market on the card

U.S stock market might open flat or lower as U.S futures hovering near the zero point. However, the futures off from low, following the bounce in Asian and European session. The situation also supported by the fact that Dow Jones Industrial Averages hit its daily SMA 200.

Investors and traders might be anxious at the current level to take short, but there is no strong reason to start new bullish leg. Nevertheless, DJIA always bounces from its SMA 200 when it is tested previously. Will it become the opportunity to take a long position?

Asian & European Stock market

Asian stock market logged lost but off from lows. Nikkei closed up 3.85 points (+0.02%) to 22,342.00, Shang Hai Composite closed down 14.68 points (-0.51%) to 2,844.66 and Australia ASX 200 down 12.80 points (-0.21%) to 6,197.60. European stock market rebound after sell-off. DAX Germany up 0.03%, FTSE UK up 0.60%, and Euro STOXX 600 up 0.21%.

Technical Analysis

Dow Jones Industrial Average (INDU)

Dow Jones Industrial Averages slumped in the previous trading day and closed near the daily SMA 200. The situation grows bearish each day as President Trump gunning U.S allies with trade tariff. However, the bearish pressure slowly lifted in Asian and European trading session.

The index must bounce from the current level; otherwise, the bearish pressure will break the support level SMA 200. The breakout below SMA 200 interpreted as a switch to bearish trend and must be avoided at all cost.

Walt Disney (DIS)

DIS claimed level above daily SMA 200 and continue moving up before rejected from the white trendline. The downward correction move expected to reach daily SMA 200 to retest it. We expect DIS to continue its recent bullish movement by bouncing from the SMA 200.

Visa Inc (V)

V sharply lower following the major market downturn. Fortunately, the bearish movement provides traders chance to enter a long position in one of the strong company. On the chart, the level around $127.00 – $130.00 is a long area. If V share prices continue to move lower, traders could look for long near SMA 100.