US stocks advance, helped by oil recovery

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Wall Street edged higher, underpinned by oil's recovery, as the commodity added over 5% on news that US stockpiles declined. Fed Minutes also supported US stocks, as they showed that policymakers were reluctant to raise rates as early as next month.

    The Dow Jones Industrial Average added 0.64%, or 112 points, to end at 17,716.05. The Nasdaq added 1.59% and closed at 4,920.72, while the S&P surged to 2,066.66 up by 1.05%.

    DJIA technical view

    "The DJIA daily chart shows that the index fell briefly below its 20 SMA before bouncing strongly, whilst the Momentum indicator is currently bouncing from its 100 level as the RSI resumes its advance after correcting overbought readings, all of which supports some further advances," said Valeria Bednarik, chief analyst at FXStreet. "In the 4 hours chart, the index is struggling around a horizontal 20 SMA, while the technical indicators have turned sharply higher, but are still within neutral territory, indicating some additional gains are required to confirm a firmer recovery during the upcoming sessions."

    Support levels: 17,653 17,576 17,535. Resistance levels: 17,750 17,841 17,902.
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