Date: 05 Oct 2018
The US factory orders increased to 2.3% month-on-month in August, comparing to the -0.5% drop registered in July and stronger than analysts’ forecast of 2.1% rise. It was the biggest surge in industrial orders since September 2017 mainly driven by demand for aircraft.
Since the beginning of October, the US industrial index gained over 0.5% and is in a well-established bullish phase since early July.
On yesterday session, the Dow Jones 30 initially fell but found enough buying pressure near 26,429 to trim some of its losses and close in the middle of the daily range, in addition, closed within Thursday’s range, which suggests being clearly neutral, neither side is showing control.
The stochastic is showing an overbought market and is setting lower highs while the price is making higher highs, signs of a potential bearish divergence.
Since July, the Dow Jones 30 has been in a steady upward movement setting higher highs and higher lows all signs of a healthy bullish trend. In early October, the index made a new year-to-date high at 26,964 but at the same time is developing a potential bearish divergence that can lead to a downward correction. UsaInd is a CFD written over Dow Jones Industrial Average futures.
UsaInd Dec ’18 Daily Candlestick Chart
Written by Hugo O’Neill, External Analyst
*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at its own risk.