Wednesday’s Technical Outlook for DJIA (.DJI)
Wall Street staged a bounce Tuesday, with the DJIA having its best day in almost 4 months, ending at 17,409.72, up by 269 pts. The NAS Comp advanced 2.12% and closed at 4,691.87, and the S&P 500 added 35 pts or 1.78% to finish at 2,036.09.
The DJIA action even on the bounce is unable to confirm a continued recovery, although the bounce after the index approached 17,000 should be seen as a Bullish indicator.
In the daily, the index has regained ground above the 200-Day MA, at 17,299, but remains far below the 20 and 100-Day SMAs, the technical indicators are recovering from oversold readings, but remain well below their mid-lines.
In the 4 hours, the index is now above a sharply Bearish 20-Day SMA, as the technical indicators head North within negative territory, approaching their mid-lines, in line with additional gains on an extension beyond 17,420, the 1st resistance.
DJIA at 17409.72 +1.57% saw a recovery back into the range of 17200-18000 and may try to rise towards 17600-800 this week. PE
Support marks:17,351 17,299 17,242
Resistance marks: 17,420 17,494 17,553