FXStreet (Córdoba) – US stocks staged a decent comeback on Thursday, underpinned by a rebound in oil prices, trimming previous day’s large losses. Oil futures rose 2.4% to settle at $31.20 a barrel, pushing energy and materials stocks sharply higher.
The Dow Jones Industrial Average gained 227 points, or 1.41%, to 16,378. The S&P 500 index climbed 31 points, or 1.67%, to 1,921. The Nasdaq Composite rose 88 points, or 1.97%, to 4,615.
DJIA technical view
“As for the technical outlook of the Dow, the daily chart shows that the index stalled short of its previous high, with the technical indicators posting tepid bounces from oversold territory, and continues developing well below their moving averages, maintaining the risk towards the downside”, said Valeria Bednarik chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are retreating from their mid-lines, while the index is currently hovering around a horizontal 20 SMA, limiting chances of further recoveries as long as the index remains below the daily high of 16,476.
Support levels: 16,346 16,272 16,221. Resistance levels: 16,476 16,563 16,612.
(Market News Provided by FXstreet)