Tuesday’s Technical Outlook for DJIA (.DJI)
Wall Street closed with modest gains last Friday, up for a 4th day running, with the DJIA + 0.11% or 19 pts to close at 17,949.37, the S&P + 4 pts at 2,102.95, and the NAS Comp +0.41% or 19 pts, to finish at 4,862.57.
The advanced was supported by local manufacturing data, as the ISM Manufacturing PMI for June rose to 53.2 from previous 51.3, showing that orders, output and exports rose at a healthy pace.
The DJIA has almost completely wiped all of its post-Brexit losses, the S&P 500 stands about 80 pts below its all time high ahead of Tuesday’s open.
The positive tone seen in worldwide stocks Friday came after BOE’s Governor Carney announced he is prepared to add more stimulus starting this Summer.
The technical picture of DJIA, the daily shows that the sharp recovery extended beyond its MAs, the technical indicators have lost upward strength, but remain within positive territory.
In the 4 hours, technical indicators are fading from extreme overbought readings, the index remains near its highs and well above its MAs, with the 20-Day SMA heading North and crossing above the 100 and 200-Day SMAs, which supports some further gains Tuesday.
DJIA at 7949.37, +0.11% resumes trading Tuesday after the US Holiday Monday and its price action around the resistance band of 18000-300 may turn out to be decisive, Key support is at 17650. The overbought state demands a sideways consolidation or a small correction before it can attempt a sustainable move to the all time highs and breakout. PE
Support marks:17,903 17,856 17,791
Resistance marks: 17,998 18,051 18,118
Have a terrific week
Latest posts by Paul Ebeling (see all)
- F1: On and Off the Track Business into the End of This Season - October 23, 2019
- Spain’s COSTA De La LUZ - October 22, 2019
- Living Near the Ocean has Real Health Benefits - October 22, 2019