Thursday’s Technical Outlook for DJIA (.DJI)

Thursday’s Technical Outlook for DJIA (.DJI)

Thursday’s Technical Outlook for DJIA (.DJI)

$DIA, $DJI

Wednesday, US stocks rallied on the back of Crude Oil’s strength, with the DJIA adding 145 pts to close at 17,851.51. The NAS Comp advanced 33 pts to end at 4,894.89, and the S&P added 0.70% to 2,090.54.

Risk appetite on dominated markets from the start of the session, accelerating in European trading hours as Crude Oil prices surged to fresh yearly highs.

Among the worst performers was Alibaba (NYSE:BABA), which dove 7% after disclosing that the US Securities and Exchange Commission is investigating its accounting practices.

Technical readings in the daily support additional gains ahead, as the technical indicators have crossed their mid-lines towards the Northside and maintain their Bullish slopes, whilst the 100-Day MA is crossing above the 200-Day MA in the 17,200 region, indicating strong buying interest.

In the near term: the 4 hours shows that the technical indicators are beginning to look exhausted towards the Northside in overbought territory, but also that the index is firmly above its MA’s, limiting chances of a strong Southward corrective move.

Commentary

DJIA at 17851.51, +0.82% closed above the Bearish channel resistance at 17750-800 Wednesday. If the rise sustains Thursday and makes a clear break above 17950, then the DJIA may try to test the 15 May 2015 highs in 18250 area.  As I write: DJIA mini 4:50a Jun 2016 17,833.00+16.0017,828.0017,856.0017,788.00

Support marks: 17,825 17,770 17,702
Resistance marks: 17,915 18,004 18,082

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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