US-CHINA trade optimism boosting the world’s wide stock market. OMX_30 is not also exceptional. But we have seen a lot of time, every December stock market rush into profit-taking. So we can expect some seasonal profit-taking ahead of charismas and 31st events.
If we see the chart closely, a rising channel from 2000 and 2016 is capped by right now. Every time the market falls back from this rising channel. So 1771 to 1800 will play as a critical swing zone for OMX_30. Initial support is at 1700 and a good place to rebound. If the market hold below 1700 than the primary target is 1647.67. Breaking below 1647.67 open the door for 1588.
If US-CHINA reaches to phase 2 deal than it is really tough to break out in 1588 than the market will rebounds from 1588 to 1700 to 1750-1.1777 again. On the other hand, if the US-CHINA deal is unable to reach to phase 2 deal than something bad will happen to omx30. Than omx30 may break below 1588 and the next target will be 1495 and finally, 1400 to 1405 is our final target.
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If we see the chart closely, a rising channel from 2000 and 2016 is capped by right now. Every time the market falls back from this rising channel. So 1771 to 1800 will play as a critical swing zone for OMX_30. Initial support is at 1700 and a good place to rebound. If the market hold below 1700 than the primary target is 1647.67. Breaking below 1647.67 open the door for 1588.
If US-CHINA reaches to phase 2 deal than it is really tough to break out in 1588 than the market will rebounds from 1588 to 1700 to 1750-1.1777 again. On the other hand, if the US-CHINA deal is unable to reach to phase 2 deal than something bad will happen to omx30. Than omx30 may break below 1588 and the next target will be 1495 and finally, 1400 to 1405 is our final target.
www. forexpundit . com