Worldwide indexes closed with solid gains on Friday, and Wall Street was no exception. The Dow Jones Industrial Average added 157 points to its latest rally and finished the week at 17,646.70.
Investors rushed to buy back stocks on news that Central Banks are taking steps to fight the recent economic slowdowns, as the ECB announced its willingness to do whatever it takes to revive the local economy, whilst the PBoC surprised the markets by cutting its rates and the banks’ reserve requirements ratio.
The daily chart for the Dow shows that the index extended above its 200 DMA, whilst the 20 DMA heads strongly higher below the current level, and seems ready to cross the 100 DMA towards the upside.
In the same chart, the technical indicators have turned lower, but hold well above their mid-lines, with the RSI indicator still in overbought territory.
In short term, the 4 hours chart shows that the index have also lost their upward strength, but are still in overbought territory, whilst the index is well above a bullish 20 SMA, all of which supports further gains, with investors now eyeing again the 18,000 level.
Support levels: 17,585 17,506 17,391
Resistance levels: 17,680 17,749 17,830