Wednesday’s Technical Outlook for DJIA (.DJI)
Wall Street gained for a 2nd day running Tuesday, with the attention focused in the upcoming UK vote over its EU membership.
Gains were moderated after Monday’s sharp advances, and the DJIA rose 24 pts, or 0.14%, to finish at 17,829.73. The S&P 500 rose 5 pts, or 0.27%, to close at 2,088.90, and the NAS Comp finished + 6 pts, or 0.14% to close at 4,843.76.
US Fed Chairwoman Janet Yellen testified before Congress and said it is unclear what effect a vote to leave the EU would have, but noted it could lead to volatility in world markets “that would negatively affect financial conditions and the US economy,” in line with the cautious tone of most central bankers.
The DJIA technical outlook is Neutral, as in the daily, the index converges with a horizontal 20-Day SMA, ad the technical indicators head nowhere around their mid-lines.
In the near term, the 4 hours shows that the index is slightly above a Bullish 20-Day SMA, currently around 17,796, as the technical indicators head South within positive territory, limiting the Northside for now.
If DJIA now at 17829.73, +0.14% fails to break above 18000 Wednesday, it may dip once more towards 17500 before bouncing back towards 18000. The chances of the range of 17500-18000 breaking to the higher side looks stronger in here.
Support marks: 17,796 17,730 17,663
Resistance marks: 17,880 17,945 17,987