Positive cues at the opening of November
UK and EU reached tentative Brexit deal five months before the UK leaves EU. The tentative deal will allow UK companies access to the European market as long as regulation in the UK is aligned with EU’s. Meanwhile, BOE maintained interest-rate unchanged at 0.75%. Officials mentioned the bank policy will depend significantly on UK-EU trading arrangements.
From the economic ground, the market will monitor ISM Manufacturing PMI data with reading forecast of 59.0. Overall sentiment is positive on possible reconciliation between U.S-China trade situation. The bull might control the month November before the trade talk commence.
Asian & European Stock market
Asian stock market kick-off the month with positive notes. Nikkei down 232.81 points (-1.06%) to 21,687.65, China stock market up 3.45 points (+0.13%) to 2,606.24, and Australia ASX 200 up 10.50 points (+0.18%) to 5,840.80. European stock market also rides the wave upside. DAX Germany up 0.69%, UK FTSE up 0.23%, Euro STOXX600 up 0.60%.
Technical Analysis
Dow Jones Industrial Average (INDU)
The war between the bear and the bull in Dow Jones Industrial Averages seems to end in “Draw” by the end of October. DJIA closed near its daily SMA 200 and providing the market with the hope that the index will resume its bullish trend. We have triple-digit gains by the index futures before market open. If the bull could dominate November month then DJIA could start a new bullish trend.
Salesforce Com Inc (CRM)
CRM could become the candidate for the long position from the daily SMA 200. A cluster of supports protecting the share prices from further descend. $137.5 is the short-term key resistance to break for the bull to enable higher path. Traders could look for long position near the SMA 200.
Qualcomm Inc (QCOM)
QCOM broke past its daily SMA 200 and rallied as high as $76.50 before starting a correction. Currently, the correction has reached daily SMA 200 and flip level which suggests possible bounce from both levels. Traders could use the moment to look for high-odds long position and ride QCOM higher.