Thursday’s Technical Outlook for DJIA (.DJI)

Thursday’s Technical Outlook for DJIA (.DJI)

Thursday’s Technical Outlook for DJIA (.DJI)

$DIA, $DJI

After spending most of the day in the Red, Wall Street reversed erasing losses just of the close finishing flat to unch on the day.

The DJIA + 2 pts at 17,789.67, the NAS Comp added 4 pts to 4,952.25, and the S&P 500 at 2,099.33, + 3 pts.

Mixed US data left local traders without any signals, as caution prevails ahead of the NFPs (Nonfarm Payrolls) report Friday.

The DJIA daily shows that the index bounced after testing its 20-Day SMA, that the Momentum indicator heads South and is about to cross its 100 mark, while the RSI indicator turned flat around 53.

In the 4 hours, the index kept developing below its 20-Day SMA that slowly gains Bearish slope, as the technical indicators present limited Bearish slopes within negative territory. A longer term decline looks to out of the picture for now, the short term picture favors the Southside, particularly on renewed selling interest below 17,725, the immediate support mark.

Commentary

DJIA at 17789.67, -0.01% opened weak reversed and recovered all the loss later on to post a Bullish candle. The setup is for a rally to 18100 or higher, but a breakout above 17900-935 is required to signal that event.  As I writ the DJIA Jun futures are trading -34.00 pts. PE

Support marks: 17,725 17,681 17,636
Resistance marks: 17,831 17,890 17,964

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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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