FXStreet (Córdoba) – US indexes managed to close the day with gains after quite a volatile session, with the DJIA up 125 points at the end of the day, closing at 16,510.19.
The S&P 500 rose 8.94 points, or 0.46% to 1,966.97, while the Nasdaq ended up 1.73 points, or 0.04% at 4,828.95.
The DJIA trimmed its latest losses, although the rally was contained by a sharp decline in bio-tech shares, after news of sudden increase in prices lead to US Democratic presidential candidate Hillary Clinton to say she would announce a plan to stop “price gouging” for specialty drugs.
DJIA technical view
“The daily chart for the DJIA shows that the index bounced from its 20 SMA after a brief dip below it, and also above a horizontal 20 SMA, this last around 16,405. In the same chart, the Momentum indicator heads higher above the 100 level, while the RSI also turned north, but remains around 50”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the index traded below its 20 SMA, whilst the Momentum indicator heads lower in negative territory, and the RSI indicator hovers around 52, far from supporting additional gains at the time being. Some follow through beyond 16,660 a strong Fibonacci resistance, is required to confirm a continued advance up to the 16,730/50 region”.
Support levels: 16,510 16,440 16,336. Resistance levels: 16,585 16,660 16,740.
(Market News Provided by FXstreet)