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US stocks gain as oil prices rally

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Wall Street surged on Monday, helped by a sharp rally in oil prices that lifted energy stocks.

    The DJIA gained 228 points or 1.39% to end at 16,620.52. The Nasdaq added 1.47% to end the day at 1570.60 and the S&P 500 added 1.36% to close at 1943.90.

    Monday's stock gains were broad, with all 10 major S&P sectors higher. Shares in Chevron gained 2.6%, tracking the 6% rise in the oil prices. The dismal manufacturing PMI reading hardly came as a surprise, hence received little attention from the trading community.

    DJIA technical view

    "From the technical view, the DJIA index appears overbought as per the 4-hour RSI. However, with 20-SMA rising, the downside potential appears limited. On the daily charts, the momentum indicator and the RSI remain in line with further bullish move, especially following the close above 16,619", said Omkar Godbole, analyst at FXStreet. "Overall, the upside is favoured and the index could be bought on dips".

    Support levels: 16,546 16,463 16,277. Resistance levels: 16,753 16,946 17,031.
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