US indexes managed to post some limited gains this Thursday, with worldwide stocks once again affected by global growth concerns. Nevertheless, tepid US data was seen as a possible FED’s delay on a rate hike, helping the DJIA to close the day 0.47% higher at 16,330.40.
The index has been trading between Fibonacci levels ever since the week started, as investors are unwilling to establish position ahead of next week FED’s decision. The range has shrunk this Thursday, with the index hovering around the 50% retracement for most of the US afternoon, recovering quickly from an intraday low of 16,162. Check fxbinarypoint.com for more details on Fibonacci trading.
The daily chart shows that the index remains below a bearish 20 SMA, while the RSI indicator continues to lack directional strength near oversold levels, although the Momentum indicator heads strongly higher above the 100 level, suggesting some limited upward potential for this Friday.
In shorter term, the index presents a neutral stance, now a few points below its 20 SMA and with the technical indicators barely heading lower around their mid-lines. At this point, seems there’s not much to do until next Wednesday, when the FED will unveil its latest economic policy decision.