News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.79%, while traders in NZD/USD are at opposite extremes with 74.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/QbLm38JxQh
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Gold: -0.93% Silver: -1.67% Oil - US Crude: -2.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/zljwnQwRbk
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/GgrFV6rChg
  • Prior to the oil blockade in January, Libya had been producing circa 1.1mbpd https://t.co/ZS6LPcKbyF
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.42% 🇨🇦CAD: -0.23% 🇦🇺AUD: -0.39% 🇪🇺EUR: -0.50% 🇬🇧GBP: -0.58% 🇳🇿NZD: -0.65% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/0EqnRHMZJ3
  • Libya has restarted oil production by 90kbpd and will resume an extra 220kbpd on September 24th, according to sources #OOTT
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: US 500: -1.50% Wall Street: -1.78% France 40: -3.30% Germany 30: -3.41% FTSE 100: -3.62% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2G6XT0J6v5
  • Tune in to @nickcawley1 's #webinar at 6:30 AM ET/10:30 AM GMT to prepare for key UK events and markets in the week ahead. Register here: https://t.co/xewSeUoDaT https://t.co/I8N4F5SmRK
  • Germany 30 IG Client Sentiment: Our data shows traders are now net-long Germany 30 for the first time since Sep 08, 2020 when Germany 30 traded near 12,883.80. A contrarian view of crowd sentiment points to Germany 30 weakness. https://www.dailyfx.com/sentiment https://t.co/PrXKfwUQbT
  • UK's Hancock says final decisions have not been taken in response to surge in COVID cases $GBP
Dow Jones Industrial Average Weak in the Knees on DB Woes

Dow Jones Industrial Average Weak in the Knees on DB Woes

2016-09-30 13:25:00
Jeremy Wagner, CEWA-M, Head of Education
Share:

Talking Points

-Deutsche Bank holding down risk flows for Dow Jones Industrial Average (DJIA)

-Wait for a break of 18,460 (for long) and 17,903 (for shorts) to mark off key levels to determine the short term trend

-This is a shorter term outlook for DJIA; Download our quarterly forecast for a longer term equities forecast.

With Deutsche Bank dominating the financial news, concerns of insolvency are spooking investors. The concern is that if DB continues to falter, how does that impact other financial institutions or main street businesses? Right now, it is more questions than answers which is why main equity markets like Dow Jones Industrial Average has been trading heavy.

Suggested Reading:US Dollar to Join Yen Rally as Deutsche Bank Sours Sentiment

For the past 2 weeks, DJIA has been consolidating in a tight trading range just above a 7 month trend line (not shown). The inability of DJIA to bounce and break higher off this trend support has me concerned that a break down may be queued up. Though the technical support hasn’t broken yet, when the market doesn’t react to a long standing trend line, the opposing may forces may be too much to “bear” (pun intended).

Dow Jones Industrial Average Weak in the Knees on DB Woes

Upon inspection of a shorter time framed chart, a move below 18,077 may be an early warning signal for continued losses as prices would be falling outside of this blue trend channel. A continued break down below 17,903 would signal additional losses are probable. If prices do break down, we’ll consider lower levels to eventually buy a dip. If that happens, we’ll fine tune the pricing later, but for now the general area of dip buying is near 17,000.

To the upside, we have the September 22 high of 18,450 as this represents the top end of the range. If prices move above there, it opens the door to new all-time highs.

If you are interested in what the shorter term momentum looks like as DJIA approaches either 18,450 or 17,903, check out our GridSight Index. (Change the chart setting from “EUR/USD” to “US30” on either “m5” or “m10”.) The GSI is a big data indicator that analyzes what past patterns and how they have historically developed.

Check out GSI here.

Suggested Reading/Viewing:

Deutsche Bank Isn’t Lehman Brothers, But It Can Still Spur Systemic Risk

---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU

Follow me on Twitter at @JWagnerFXTrader .

See Jeremy’s recent articles at his Bio Page.

To receive additional articles from Jeremy via email, join Jeremy’s distribution list.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES