- Summary:
- Dow Jones Index set for more heavy losses on Monday as crude oil price slumps to $30 per barrel amid a price war between Russia and Saudi Arabia
Dow Jones Index set for more heavy losses on Monday as crude oil price slumps to $30 per barrel amid a price war between Russia and Saudi Arabia. The coronavirus outbreak continues to be the major disruptive force in global economy, impacting households, businesses, and policymakers. Investors running for cover to safe haven assets with the US 10-year yield is off 30 basis points to below 0.475% while the 30-year yield drops below 1% for the first time. Investors now expecting the Federal Reserve to deliver another emergency rate cut by 50 or 75 basis points before the next policy meeting.
The futures in Wall Street have hit the daily limit at -5% the Dow Jones futures as of writing are 4.87% lower at 24,534. The Nasdaq futures are 4.82% lower at 8,093, and the S&P 500 futures are 4.90% lower at 2,819.
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Dow Jones Technical Levels to Watch
Dow Jones futures hit the lowest level since January 2019 as the sell-off that started on Thursday accelerates today amid the coronavirus outbreak and the crude oil price war between the Russia and Saudi Arabia. The technical outlook is bearish now and lower levels is the most possible scenario. A move above the 27,000 might cancel the recent positive momentum.
On the downside, the first support level for the Dow Jones will be met at 24,534 the daily low. If the Dow Jones index breaks below the next support zone stand at 24,341 the low from January 29th, 2019. If bears break below the next level to watch is at 24,277 the low from January 28th.
The Dow Jones first resistance seen at 25,356. If Dow Jones Index breaks above that level in today’s session the next level to watch is at 26,290 the high from Friday’s trading session. More pressure might emerge at 27,233 the 200-day moving average.