Monday’s Technical Outlook for DJIA (.DJI)
US stocks closed in the Red last Friday, with the DJIA down by 0.33% or 58 pts, to end the day at 17,675.16, the worst week for the index in over a month. The S&P shed 6 pts, to finish at 2,071.22, and the NAS Comp fell 44 pts to end at 4,800.34.
Uncertainty over the upcoming Brexit referendum on whether to maintain or not its EU’s membership, has weighed on investors’ mood, although fears receded some by the end of the week.
News that the usually Hawkish St Louis Fed Prez Bullard was the FOMC member who sees now just 1 rate hike into Y 2018 in the dot plot released earlier in the week, fueled concerns over the US economic recovery, and weighed on local stocks. Some pundits called for his resignation, Wild!
The DJIA daily shows that the index held within its 20-Day MA, capping the Northside at 17,824 and the 100-Day MA, offering support at 17,567, as the technical indicators turned modestly lower after failing to overcome their mid-lines, maintaining the risk towards the Southside.
In the 4 hours, the index is hanging around its 20-Day SMA, and below the largest ones, as the technical indicators head modestly lower below their mid-lines, supporting the Bearish case for Monday.
DJIA at 17,675.16, -0.33% keeps oscillating in the range of 17400-18000 which is not expected to break in the next couple of sessions before the Brexit poll. but the index may test the interim resistance of 17800 depending on the UK news. PE
Support marks: 17,626 17,567 17,596
Resistance marks: 17,705 17,770 17,824
Have a terrific week…
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