Tuesday’s Technical Outlook for DJIA (.DJI)
Wall Street rallied strongly Monday but finished off its highs, with the DJIA + 175 pts to finished at 17,710.71, led by a 3% gainer in Crude Oil, underpinning the energy related sector.
The NAS Comp advanced 1.22% to finish at 5,775.56, and the S&P 500 gained 20 pts to 2,066.66. The tech sector also gained with Apple (NASDAQ:AAPL) adding 4% Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A) disclosed it had taken a stake in the company.
The DJIA erased most of last week losses, but the recovery was not enough to confirm a Northward continuation, given that in the daily, the rally stalled right below a Bearish 20-Day SMA, currently at 17,779, as the technical indicators have posted a modest recovery, but remain within negative territory.
In the near term, the 4 hours shows that the index advanced above a now flat 20-Day SMA, but remains below the 100 and 200-Day SMA’s, and the technical indicators have turned South around their mid-lines, maintaining a Neutral stance in here.
The DJIA 17710.71, +1.00% bounced up from Key support at 17500, it must extend beyond 17800-18000 to reverse the downtrend (not easy), targets are still 17350-150 (Bearish)
Support levels:17,675 17,610 17,530
Resistance levels: 17,779 17,846 17,928
Latest posts by Paul Ebeling (see all)
- Chances of Rate Hike Falls as Fed Cuts Debt - May 25, 2017
- Crude Oil Price Dives on OPEC Production Cuts - May 25, 2017
- Lack of Sleep Can Lead to Heart Disease and Stroke - May 25, 2017