Possible UK Delayed Brexit, positive note from China on trade talk boost the market
The stock market set to open higher today after UK lawmaker votes the option to delay Brexit. The option needs to be discussed with Euro members which could experience rejection. However, the market optimistic UK will get the extension.
Good news also comes from China after Premier Li Keqaing expressed optimism on U.S-China trade talk. Though there will not be an agreement in March. A meeting between President Trump and China’s Xi Jinping might take place in April.
Asian & European Stock market
Asian stock market is mostly higher today. Japan stock market up 163.83 points (+0.77%) to 21,450.85, China Shanghai Composite up 31.07 points (+1.04%) to 3,021.75, and Australia ASX 200 down 4.40 points (-0.07%) to 6,175.20. European stock market also pointed higher after Brexit vote. DAX Germany up 0.95%, UK FTSE up 0.66%, Euro STOXX600 up 0.63%.
Dow Jones Industrial Average (INDU)
DJIA stick near 25,800 – 26,000 area and it seems the index will not make a breakout above the area this week. The index futures currently up more than 110 points and indicate possible finish inside 25,800 – 26,000 for DJIA. If the index could not break above 26,000 next week then it is possible it will reverse and start a new bearish trend.
United Parcel Service (UPS)
UPS share prices are at a crossroad as it challenges the daily SMA 200. In the previous test, the share prices tumbled and found support at daily SMA 100. We think UPS could breakout above the averages and move toward $113.00 – $116.00 area. Long position when breakout and retest happen is the best option to take.
However, strong bearish pattern from the daily SMA 200 might incite the continuation of the bearish trend.