Cautiously optimistic sentiments ahead of Jackson Hole meeting . While investors might be eyeing more clues from Janet Yellen speech for the interest rates path for the rest of the year, ECB President Mario Draghi will be under the spotlight as well with investors watching potential QE tapering. Also, global investors will be searching for signs of ways central bankers exiting huge stimulus packages started since the financial crisis. At this current juncture, US dollar index is slightly firmer above the 93 pts.
Daily chart suggesting uptrend intact . The E-mini Dow has rebounded sharply following Monday’s hammer candle, which stood above the 21,600 level. It has surged above the 21,720 level and retested the 21,800 zone to end near the 21,900 level.
30-min chart expecting short term pullback . Meanwhile, the 30-min chart has experienced an inverted Head and Shoulders pattern breakout accompanied by higher volumes. Based on the H&S formation, the target will be envisaged around 21,900, which coincides with the resistance zones. With the Stochastics indicating an overbought status for E -Mini Dow, we can anticipate a short term pullback. Should there be a downward violation of 21,700, next support will be anchored around 21,580-21,620.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....