Thursday’s Technical Outlook for DJIA (.DJI)
Wednesday, Wall Street indexes spiked for a 2nd day running, with DJIA and S&P 500 reentering positive territory YTD, as Brexit worries continued to fade.
The DJIA rose 1.64% or 284 pts to finish at 17,694.68
The NAS Comp added 86 pts, to end at 4,559.25
The S&P 500 gained 1.7% or 34 pts, to close at 2,070.77
The US indexes got some early clues from overseas’ indexes that also staged a strong recovery.
Crude Oil prices recovering towards the Key 50.00 mark drove energy related assets higher.
DJIA extended its rally almost 100 pts in the settlement mins after the close, reflecting the strong upward momentum in stocks, and sending the index back above its 20 and 100-Day MAs.
In the daily, indicators have extended their recoveries, and are currently crossing their mid-lines towards the Northside, supporting further gains ahead.
In the 4 hours, the index is now converging with the 100 and 200-Day SMA’s, as the technical indicators head sharply North near overbought, also supporting a continued advance.
This 2 day rally looks to be overstretched, and a Southward corrective movement cannot be disregarded, dips will likely attract fresh buying interest, and keep the Bullish mood afoot.
Support marks:17,666 17,595 17,511
Resistance marks: 17,765 17,833 17,918