US stocks close higher for second day in a row

By FXStreet FXStreet (Córdoba) – Wall Street closed with solid gains, up for a second day in-a-row, with the advance led by a rally in energy and commodity related equities, although trading conditions were once again choppy, amid low winter-holiday volumes.

The Dow Jones Industrial Average rose 165.72 points, or 0.96%, to 17,417.34. The S&P 500 gained 17.90 points or 0.88%, to 2,039.03. The Nasdaq Composite climbed 32.19 points or 0.65%, to 5,001.11.

DJIA technical perspective

“The daily chart shows that the index has extended further above its 100 SMA and is nearing the 200 DMA that converges with the 50% retracement of the latest daily decline at 17,446 the immediate resistance. In the same chart, the technical indicators have extended their bounces from oversold territory, but remain within bearish territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart presents a clearly bullish scenario, as the index has broken above its 20 SMA while the Momentum indicator heads strongly higher above its 100 level and the RSI indicator hovers around 56. A steady continuation above the mentioned resistance, should lead to a steady advance up to 17,563, the 61.8% retracement of the same decline.”

Support levels: 17,398 …read more

Source:: FX Street