The FXCM Dow Jones Industrial Average CFD's (US30) daily chart is on the left. The index has moved into the bullish area between the upper blue and red bands. The right-hand chart is its hourly timeframe. Here, the trend-following EMAs have crossed bullishly (black ellipse). For the index to make further upside, the EMAs need to develop angle and separation, and the stochastic needs to turn bullish and head into the 80+ area (blue arrow). We suggest caution, as headwinds are growing regarding risk assets. If the stochastic falls into the 20- areas (red rectangle), shorts may be targeting the recent rally.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.