Tuesday’s Technical Outlook for DJIA (.DJI)

$DIA, $.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.

Commentary

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

Stay tuned…

  Apple, bearish, Buffett, DIA, DJI, DJIA, energy, indicators, negative, resistance, reverse, support, targets, technical, technology, trend

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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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