US stocks rise helped by oil’s recovery

FXStreet (Córdoba) - US stocks struggled for direction, as the US Fed offered a mixed statement during the previous session, leaving investors with no clear clues. Oil prices rose sharply, but retreated before the closing bell assuring a volatile ride, amid reports, later denied, that Saudi Arabia proposed a 5% output cut across the board.

The three US indexes closed in the green, with the DJIA up 125.18 points, or 0.79%, to end at 16,069.51. The S&P gained 10.39 points, or 0.55% to 1,893.94. The Nasdaq climbed 38.51 points, or 0.86%, to 4,506.68.

DJIA technical view

“The technical picture for the DJIA presents a mild positive tone, as in the daily chart, the index advanced again towards its 20 SMA, still capping advances and now around 16,163 while the RSI indicator continued recovering from oversold territory and the Momentum indicator turned back north, but remains below its mid-line”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the index has no clear directional strength, as it has been trading back and forth around a flat 20 SMA, while the technical indicators hover around neutral territory, giving no clear signs of upcoming direction. The weekly high of 16,235 seems to be the key, as some additional gains beyond it should put the index in the bullish track during the upcoming sessions.”

Support levels: 16,024 15,952 15,873. Resistance levels: 16,107 16,180 16,235.