The U.S stock market set for positive open
Yesterday, the stock market battered and experienced the worst-selling since 1987 “Black Monday”. All positivism gone as coronavirus continue to spread exponentially outside of China. But, the stock market might find temporary relief in the stimulus and measures to alleviate the slowdown caused by a coronavirus.
Even though today will become a bullish day, traders might want to continue waiting patiently as there is no cure for the coronavirus yet. U.S stock market might turn higher but it is prone to sudden bearish pressure.
Asian & European Stock market
The Asian stock market lower but Australia manage to rally before the close. Japan’s stock market down 1128.58 points (-6.08%) to 17,431.05, China stock market down 36.06 points (-1.23%) to 2,887.43 and Australia ASX 200 up 234.70 points (+4.42%) to 5,539.30. The European stock market starting a bullish relief rally. DAX Germany up 7.57%, UK FTSE up 7.59%, Euro STOXX600 up 7.73%
Dow Jones Industrial Average (INDU)
A technical bounce on progress after continuous bearish pressure on the index. DJIA futures currently up more than 1000 points and might erase part of the losses incurred yesterday. At the current time, traders will stay pessimistic and monitoring the update on the coronavirus situation. A bullish bounce is only temporary at least until the spread of virus become limited or there is an effective vaccine produced.
Coca Cola Co (KO)
It is time to think long-term. This time we will look at KO share prices which have pulled-back from $60.13 high. The share prices have returned inside the bullish channel range and currently traded at the bottom of the channel. A bounce is possible but might be limited near $50.00 or the top of the channel.
If KO share prices reach either $40.00 or the daily SMA 200 then traders could start to enter major long positions.