Dow Jones Rebounds, DAX Consolidates, Hang Seng May Form "AB=CD"

DOW JONES, DAX 30, HANG SENG INDEX OUTLOOK:

  • Dow Jones Industrial Average rebounded softly from a 100-Day SMA during 26,900
  • DAX 30 index might connect after combining a vast bearish candlestick. Bollinger Band widened
  • Hang Seng Index (HSI) might form a bullish “AB=CD” pattern

Dow Jones Index Outlook:

Dow Jones Industrial Average index (DJIA) futures are oscillating during Asia open after induction a tiny benefit overnight. Concerns remain, however, over a coronavirus resurgence in partial of a EU, and shrinking hopes for a US mercantile stimulus plan. The US Dollar climbed for a second day to 94.00 – a top turn seen in over 7 weeks. A stronger US Dollar looks set to cold changed steel and crude oil prices.

On a calendar, a RBNZ interest rate decision during 10:00 SGT and US Markit Manufacturing PMI readings to be expelled during 21:45 SGT are among a pivotal events today. Read some-more on a economic calendar.

The VIX destiny tenure structure (chart below) suggests that a marketplace is pricing in aloft levels of sensitivity heading adult to a US Presidential Election, with VIX futures peaking in early Nov and reverting behind thereafter.

Dow Jones Rebounds, DAX Consolidates, Hang Seng May Form AB=CD

Source: vixcentral.com

Overnight trade displayed a sincerely balanced sectoral pattern, with information record (+1.37%), communication services (+1.09%) and consumer staples (+0.83%) leading, while appetite (-1.01%), financials (-0.67%) and materials (-0.23%) lagged.

Dow Jones Index Sector opening 22-9-2020

Dow Jones Rebounds, DAX Consolidates, Hang Seng May Form AB=CD

Source: Bloomberg, DailyFX

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Technically,the Dow Jones found some support during a 100-Day Simple Moving Average (SMA) line, that is hovering around a 26,900 level. Despite a amiable benefit final night, a overall movement appears inequitable towards a downside, as cost plunged next a reduce Bollinger Band dual days ago and shaped a vast bearish candlestick. A mangle next then100-Day SMA is expected to open a room for serve waste with an eye on 26,650 – a 23.6% Fibonacci retracement.

Dow Jones IndexDaily Chart

Dow Jones Rebounds, DAX Consolidates, Hang Seng May Form AB=CD

DAX 30 Index Outlook:

Germany’s DAX 30 also purebred a vast bearish candlestick on Monday, that flags some-more turmoil ahead. A poignant widening of a Bollinger Band suggests there might be some-more offered vigour in a days to come while a MACD indicator has also flipped decisively into a disastrous territory. The technical observations are in line with a elemental picture, with a pathogen resurgence potentially crude Europe’s frail mercantile recovery.

DAX 30 Index – Daily Chart

Dow Jones Rebounds, DAX Consolidates, Hang Seng May Form AB=CD

Hang Seng Index Outlook:

In a past 4 weeks, a HSI has trailed a vital peers – such as a Dow Jones, Nikkei 225 and DAX 30 – due to mixed headwinds. Financial names were among a misfortune performers yesterday, with HSBC (-2.05%), Hang Seng Bank (-1.28%) and AIA (-1.09%) heading a decline.

Technically, HSI is expected combining a bullish “AB=CD” settlement (chart below), with a intensity support turn found during 23,300. A organisation miscarry from a “D” indicate might vigilance a intensity trend reversal. However, serve decrease next a “D” indicate could potentially lead to a exam of a 23.6% Fibonacci retracement turn during 22,900.

Hang Seng Index Daily Chart

Dow Jones Rebounds, DAX Consolidates, Hang Seng May Form AB=CD

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— Written by Margaret Yang, Strategist for DailyFX.com

To hit Margaret, use a Comments territory next or @margaretyjy on Twitter