Positivism on US markets takes precedence, this time because of the US withdrawal from the nuclear agreement with Iran. At first reading, such a decision is detrimental to the stock as geopolitical tensions grow, but looking in detail, we must break our thinking through the prism of rising oil. The fact is that the energy sector is the most important in major stock indices, and oil growth inevitably leads to a rise in the value of energy companies. Looking at Dow Jones, energy giants Chevron and Exxon Mobil are among the best performing.
Technical Dow Jones recorded a breakthrough at a key level of resistance, and this opened its way to new peaks. For most of 2018, the index moved in triangular consolidation, mainly due to a lack of strong foundation to support the stock. In addition, geopolitical tensions and Trump's controversial policy have contributed to the fall in indices. So far we have a breakthrough in basic diagonal resistance, as well as several signals supporting long positions. The price failed to break the 200-year period and made a strong rebound in the upward direction - indicative of the strength of the bulls. Sequential counts 4th on top - the upward pulse is in effect. DeMarker is in a neutral zone and does not signal.
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