Dow Jones Slide On Renewed Tensions Between China and USA

The Dow Jones started lower the trading session on Friday amid increasing tensions between the China and USA. Chinese administration released draft legislation to impose a new national security law on Hong Kong. The new legislation will ban treason, sedition, secession and subversion of the central government in China. The move might spark a new round of pro-democracy protests and a stand-off that we saw last year.

Yesterday the US Senate passed a bill that could potentially ban some Chinese companies from listing on American stock exchanges such as Baidu and Alibaba. Retaliation from China can’t be ruled out that will further escalate the tension between the two superpowers.

The geopolitical tensions overshadowed some positive comments over the coronavirus vaccine by Dr Anthony Fauci who said earlier today that Moderna’s vaccine data looked promising.

Boeing is 1.60% lower at 136.78, Goldman Sachs is 0.75% lower at 178.75, American Express -1.32% at 88.64, and Apple is 0.11% higher at 317.19.

Download our Q2 Market Global Market Outlook

Dow Jones Price Support and Resistance

Dow Jones is 0.59% lower on Tuesday at 24,338 as the index retreat from two-month highs but keeping the recent rebound alive from the March lows as the Dow Jones index trading above the 50-day moving average. However, the long term technical outlook is still bearish as long as the index trades below the 100-day moving average.

On the upside, first resistance for the Dow Jones stands at 24,470 the daily top. A move above 24,470 might test 24,734 the high from yesterday’s trading session. The next hurdle for the Dow Jones index is at 25,036 the high from March 10.     

On the contrary, first support for Dow Jones index is at 24,294 the daily low. Next strong support for the Dow Jones index will be met at 24,079 the low from May 18. A break below 24,079 might open the way for a test of 23,324 the low from May 15.    

Don’t miss a beat! Follow us on Telegram and Twitter.

More content