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US stocks closed lower, snapping winning streak

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Worldwide stocks closed in the red this Tuesday, with Wall Street snapping a five-day winning streak, weighed by renewed concerns over China's economic future and a retracement in oil prices.

    The Dow Jones Industrial Average closed at 16,964.10, down by 109 points, while the Nasdaq and the S&P shed over 1.0% each, closing at 4,548.83 and 1,979.26 respectively.

    DJIA technical outlook

    “The daily chart for the Dow Jones shows that buying interest surged on a test of the 100 DMA, at 16,915, but that the index is currently having some trouble to retain gains beyond the 200 DMA. The RSI indicator in the mentioned time frame heads slightly lower around 63, while the Momentum indicator also turned south within positive territory, although with limited downward strength,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical picture is neutral, with the index hovering around a mild bullish 20 SMA, but the technical indicators lacking directional strength around their mid-lines. Much of the upcoming direction for US stocks will depend on whatever the US Federal Reserve decides next week, as if the Central Bank reaffirms its pledge to raise rates at least 3 to 4 times this year, stocks may turn long term bearish.”

    Support levels: 16,915 16,835 16,761. Resistance levels: 17,021 17,105 17,174.
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