US stocks close lower as oil continues to weigh

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - US stocks ended lower on Tuesday as oil prices continue to weigh on energy sector, as WTI posted fresh 6-year lows.

    The Dow Jones Industrial Average dropped 162.5 points, or 0.92%, to 17,568, after shedding as much as 245 points earlier in the session. The S&P 500 lost 13.48 points, or 0.65%, to 2,063.59. The Nasdaq Composite dropped 3.57 points, or 0.07% to 5,098.24.

    DJIA technical view

    “The Dow fell down to 17,481, bouncing from around its 200 DMA as oil prices erased most of their intraday losses, but maintains a strong bearish tone as in the daily chart, the technical indicators maintain their bearish slopes after entering negative territory”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, and according to the 4 hours chart, the downside is also favored, as the index has extended below its moving averages, while the Momentum indicator heads strongly lower below its 100 level and the RSI also points south around 37, in line with the longer term outlook. A break below the mentioned daily low should lead to a test of this December low at 17,421, with a break below it anticipating a continued decline for the rest of the week”.

    Support levels: 17,481 17,421 17,365. Resistance levels: 17,592 17,648 17,710.
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