US stocks gain as oil rebounds

By FXStreet Wall Street ended on a high note on Thursday, with 30-share Dow index closing 212.44 or 1.29% higher at 16,697.36. The S&P 500 index advanced 1.13% to 1,951.70 and the tech heavy Nasdaq strengthened 0.87% to 4,582.21.

Stocks opened higher, but quickly fell into losses after news of big energy firms defaulting on their loan payments hit the wires. However, oil prices rally calmed market nerves and helped the battered indices to score gains. On data front, a sharp rise in the durable goods orders in January triggered speculation that the manufacturing sector may have bottomed out.

DJIA technical perspective

“From technical viewpoint, a rebound from 20-SMA support in the daily chart followed by a bullish daily close above 16,665 indicates the gains could be extended further”, said Omkar Godbole, analyst at FXStreet. “The daily and the 4-hour RSI are in the positive territory and rising, which further adds credence to the bullish view. Overall, the doors are open for further advances.”

Support levels: 16,570 16,482 16,277. Resistance levels: 16,753 16,900 17,031.
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Source:: FX Street