Friday’s Technical Outlook for DJIA (.DJI)
Thursday, US stocks extended the rally, with the DJIA and the S&P 500 closing at fresh all-time highs, as NAS Comp struggled to hold on to yearly gains.
Wall Street rose in mid-day trading, as another batch of encouraging US data, which included the PPI (producer price index), spooked the Scrooge of economic slowdown in the world’s largest economy.
The DJIA added 134 pts or 0.73% to close at 18,506.41
The S&P 500 plus by 0.53%, to 2,163.75.
The NAS Comp advanced 28 points or 0.57% to close at 5,034.06.
In the daily, DJIA holds near the close and well above its MA’s, the Momentum indicator in the mentioned frame is retreating modestly from overbought levels after the close and not than suggesting an upcoming Southside move.
In the same chart, the RSI indicator heads North around 70, in line with further gains.
Near term, the 4 hours shows that technical indicators lack directional strength, RSI remains around 80, and the 20-Day SMA keeps leading the way North, rising alongside with price and providing a critical dynamic resistance in the case of intra-day retracements.
Support marks:18,469 18,390 18,322
Resistance marks: 18,560 18,605 18,660