US stocks post strong gains

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Wall Street posted strong gains this Tuesday, with all of the three indexes closing the day near its highs. The Dow Jones Industrial Average added 348 points to end at 2.11%, while the Nasdaq and the S&P jumped over 2% each.

    The DJIA has advanced ever since the day started, but accelerated during the American session, following improved local data that anyway is far from avert the latest economic slowdown.

    DJIA technical view

    “Holding near its daily high at the close, the daily chart presents a strong positive tone, as the technical indicators have resumed their advances near overbought levels, while the benchmark extended further above a bullish 20 SMA,” said Valeria Bednarik, chief analyst at FXStreet. “The index, took one step further towards the longer moving averages, as the 100 SMA stands at 16,952 and the 200 SMA at 17,007, a critical resistance area for this Wednesday. In the 4 hours chart, the index is also clearly bullish, as the 20 SMA advanced further, now well below the current level, while the Momentum indicator heads higher, within positive territory, and the RSI indicator hovers around 66, in line with the current consolidative stage after the close, but maintaining the positive tone.”

    Support levels: 16,494 16,423 16,348. Resistance levels: 16,570 16,828 16,910.
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