Another positive week increases investor confidence
Dow Jones index
The uptrend continued in slow conditions as the market celebrated Thanksgiving. The Dow Jones rose above the August high as investors gained confidence from lower long-term US interest rates.
US 10-year interest rates fell to 3.69%, its lowest level in 7 weeks, as reduced inflation expectations. This week US Fed Powell updates the market on his views on the economy. Should Powell indicate a slowing in interest rate rises, the market could rise significantly.
While the Dow Jones index is extremely positive now, unexpected news could result in a quick market reversal. A technical sell pattern is when the market rises above resistance only to trigger a sell signal as prices move back below resistance. The speech by Powell and Friday’s US employment figures could provide this unexpected news event.
Resistance: 36000, 37000
Support: 34000, 33000, 32000, 31725, 31000
The Nikkei had another positive week as US equities helped push values higher. The stronger Yen is a negative for the Nikkei, so the recent gains have been limited.
The recent return of tourists to Japan is positive for the Japanese economy. Many analysts are bullish on the prospects for the Nikkei in the medium term. Short-term volatility is low, so traders need to be patient for trading opportunities to join the uptrend. When a market is in a quiet trend, traders should expect to hold positions for longer than usual to realize their profits.
Resistance: 28500, 28750, 29000, 29250
Support: 28000, 27750, 27000, 26500, 26000