DJI Chart Analysis
- It has been a bullish week for Dow as investors are highly optimistic about the stimulus in the early weeks. However, a lack of actual progress on the relief helped the bears gain some strength towards the end of the week.
- On the U.S economy, a better than expected NFP data shows that the labour market remained quite steady, though still a drop compared to the previous.
- On fundamental, we have to watch for the U.S – China tension.
- With the Executive Order, which aims to purge “untrusted” China companies (WeChat and TikTok), share prices of other U.S listed Chinese companies had been affected.
- Microsoft has been given 45 days to complete the purchase of TikTok operations, which might also be a challenge.
- On Technical, we saw weakening momentum as prices continue to climb higher. Nearing June high of 27600 level, some pullback / profit taking would be expected.
- Key level to watch: 26700.
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