FXStreet (Córdoba) – Wall Street closed dip in the red and with the DJIA reaching fresh 4-month lows, as crude oil prices were unable to recover ground and plunged back to their recent multi-year lows. Fears returned to investors after the US EIA report showed a large increase in gasoline and distillate stockpiles, in an already oversupplied market.
The black gold led the way this Wednesday, with the DJIA closing the day down 364 points at 16,151.41 after being down as much as 390 points intraday. The Nasdaq lost 3.41% and ended at 4,526.07 while the S&P lost 2.5%.
DJIA technical perspective
“The technical outlook for the Dow is strongly bearish, as in the daily chart, the Momentum indicator is extending its decline to fresh lows below the 100 level and into oversold territory, while the RSI turned back south near oversold territory, after a limited upward corrective move”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is now below a bearish 20 SMA, after trading briefly above it, while the technical indicators have lost their bearish strength, but remain well below their mid-lines, supporting further declines on a break below 16,110, the daily low and the immediate support”.
Support levels: 16,110 16,045 15,980. Resistance levels: 16,234 16,310 16,392.
(Market News Provided by FXstreet)