INVESTMENT PRICING

Using support and resistance in trading

Support and resistance are key concepts that help traders understand, analyze and act on chart patterns in the financial markets. Support describes a price level where a downtrend pauses due to demand for an asset increasing, while resistance refers to a level where an uptrend reverses as a sell-off happens. Forex support and resistance allows FX traders and investors to better understand where to enter and exit trades, reduce their risk exposure and benefit from a favorable risk to reward ratio.

Dow Jones Forecast Largely Unchanged After Fed Minutes Despite Losses

The Dow Jones dipped slightly following the release of FOMC meeting minutes Wednesday afternoon. In the transcript it was revealed Fed officials have pondered yield curve control as a possible policy option.While gold prices dropped and the US Dollar spiked, equity markets suffered only minor losses. To be sure, the underlying tailwind behind stocks remains intact after the Fed announced large scale asset purchases are officially part of the conventional monetary policy toolkit.

More about Dow Jones Forecast