Friday’s Technical Outlook for DJIA (.DJI)
US stocks rose for a 3rd session running Thursday, supported by prospects of more monetary stimulus from major central banks after BOE’s Carney hinted at a Summer rate cut.
The DJIA rose 235 pts or 1.33%, to close the day at 17,929.99.
The S&P 500 gained 28 pts, or 1.36%, at 2,098.86.
The NAS Comp climbed 63 pts, or 1.33%, at 4,842.67.
All US major stock market indexes were within less than 100 points from pre-Brexit highs and both, the S&P 500 and DJIA turned back to the Green on the year, as the NAS Comp remained in the Red.
The DJIA daily presents a clear Northward potential, given that the technical indicators are now heading North above their mid-lines, and the benchmark index has extended its recovery beyond all of its MAs.
In the near term, and according to the 4 hours, the Northside is also favored, as the 20-Day SMA turned higher below the current mark, and the index has also overcome its 100 and 200-Day SMAs. In this last frame, the technical indicators turned flat within extreme overbought levels, but given that the benchmark keeps pressuring the highs, chances of a Southward corrective movement during Friday’s pre-4th of July US holiday look limited.
DJIA at 17929.99, or +1.33% may test the the Key resistance zone of 18000-300 Friday, the price action in this 300 pts band will be decisive for the medium term. PE
Support marks:17,865 17,791 17,700
Resistance marks: 17,938 18,051 18,118