DJIA technical picture favors the downside

By FXStreet FXStreet (Córdoba) – Wall Street remained closed this Monday, with the major worldwide indexes closing in the green, although with limited gains.

China resumed its activity after a long weekend, with the Shanghai Composite down 2.32% and dragging most of the local indexes lower on renewed concerns about China’s economic deceleration. Over the weekend, a Central Bank officer said that volatility in China’s stocks markets it’s nearing its end, although investors are still quite susceptible to the index moves, and will take more than the statement of a PBoC officer. In the meantime, the Shanghai composite will likely determinate all of the major indexes direction.

DJIA technical view

“As for the DJIA, the latest registered close was at 16,102.38 on Friday, and the technical picture favors the downside, given that the latest advance stalled around the 61.8% retracement of the late August decline around 16,659”, said Valeria Bednarik, chief analyst FXStreet. “So far, buying interest has been surging around the 38.2% retracement of the same rally at 16,100, as the 4 hours chart shows that brief slides below the level triggered some demand”.

Support levels: 16,028 15,978 15,919. Resistance levels: 16,194 16,242 16,385.
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Source:: FX Street