US Stock market Technical Analysis October 14, 2019

Positive trade development overshadowed by weak China’s data

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Both U.S and China have agreed for a partial trade deal which will be signed in three weeks. President Trump also postpones the tariff implementation which planned to in-force this Tuesday. Despite the positive development, it seems the stock market will make a pullback today.

China import and export numbers come out weaker than expected. Export fall 3.2% compared to September last year. Meanwhile, import falls 8.5% YoY. DJIA futures down 90 points before the market opens and indicates lower opening day.

Asian & European Stock market

The Asian stock market advance to the positive side. Japan’s stock market up closed, China stock market up 34.23 points (+1.15%) to 3,007.88, and Australia ASX 200 up 35.80 points (+0.54%) to 6,642.60. The European stock market traded lower. DAX Germany down 0.64%, UK FTSE down 0.51%, Euro STOXX600 down 0.91%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA touched 27,000 handles and closed below the resistance level. The index might continue upward and test the top trendline. It is possible that DJIA could print fresh yearly high before the end of the year. However, it is better to wait for the breakout confirmation above the trendline before jumping to a bullish conclusion.

Canada National Railways (CNI)

CNI broke below its daily SMA 200 which indicates the start of a bearish trend. The share prices made recovery and reach the bottom trendline as shown on the daily chart. If CNI continues upward then it might test SMA 200 and rejected from it. Traders could prepare for short positions and enter when there is a bearish reaction.

Union Pacific Corp (UNP)

UNP trend is bearish inside the channel and the share prices also broke below its SMA 200. We expect the share prices to continue its bearish trend inside the channel. Short positions near the top of the channel or SMA 200 are the best option, traders could take.

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