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.

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