US stocks extend gains into second day

Ani Salama FXStreet

US stocks extended gains for a second session on Wednesday turning back positive for the year as Brexit worries continued to ease while oil prices rising towards the key 50.00 level pushed energy-related assets higher.

The DJIA rose 284 points, or 1.64% to end the day at 17,694.68. The S&P gained 35 points, or 1.70%, to close the day at 2,070.77. The Nasdaq added 87 points, or 1.86%, to end at 4,559.25.

DJIA technical viewpoint

“The Dow extended its rally almost 100 points in the few minutes after the close, reflecting the strong upward momentum in stocks, and sending the index back above its 20 and 100 DMAs. In the daily chart, indicators have extended their recoveries, and are currently crossing their mid-lines towards the upside, supporting further gains ahead,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is now converging with the 100 and 200 SMAs, whilst the technical indicators head sharply higher near overbought levels, also supporting a continued advance. The two-day rally, however, seems a bit overstretched, and a downward corrective movement can't be disregarded, yet dips will likely attract fresh buying interest, and keep the bullish mood alive.”

Support levels: 17,666 17,595 17,511. Resistance levels: 17,765 17,833 17,918.

Author

Ani Salama

FXStreet

Ani Salama is an Economist specialized in financial markets and statistics analysis. In 2010, she joined FXstreet where she now contributes with the news section.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.