Bearish reaction on Iran Sanction

Slightly lower open is on the card for U.S stock market after the U.S imposed sanctions on Iran. Friday wild swing after contradicting statement by President Trump’s economic advisor over U.S-China trade war might continue on Monday.

The market soared by U.S sanction against Iran and expect retaliation. Aside from the sanction, there will be a midterm election to watch on 6th November.

Asian & European Stock market

Asian stock market pullback on Iran sanction. Nikkei down 344.67 points (-1.55%) to 21,898.99, China stock market down 11.05 points (-0.41%) to 2,665.43, and Australia ASX 200 down 31.10 points (-0.53%) to 5,818.10. European stock market mixed. DAX Germany up 0.21%, UK FTSE up 0.26%, Euro STOXX600 up 0.21%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The situation of DJIA continues sideways even though the index could climb above its SMA 200. Selling on the last day of the previous week is a concern. If the bear follows through by pushing the index and close below daily SMA 200 then DJIA expected to continue its bearish trend.

Accenture LTD (ACN)

If the U.S market started a bearish trend then ACN might become the target for short positions. The share prices currently traded at daily SMA 200 and showing bearish reaction. Further bearish close could push ACN down to test $150.00.