Technical Analysis – US 30 index consolidates near highs as bearish pressures fade
- Anthony Charalambous
The US 30 stock index’s (Cash) latest positive drive seems to have slowed somewhat near its highs. That said the soaring simple moving averages (SMAs) are safeguarding the broader bullish uptrend.
Moreover, the Ichimoku lines are endorsing a neutral-to-bullish bearing, while the short-term oscillators are conveying mixed signals in directional momentum. The MACD is standing a tad above its red trigger line, while the RSI is trying to improve in bullish territory. The negative charge in the stochastic oscillator is starting to diminish, suggesting positive momentum may resume.
To the upside, initial resistance could arise from the all-time high of 35,092. Should the bulls manage to pilot to new highs, the price may target the 35,513 barrier, which happens to be the 123.6% Fibonacci extension of the down leg from 35,092 until 33,287. Another leg higher could then meet the 150.0% Fibo extension of 35,993, just shy of the 34,000 number.
Alternatively, sellers face an immediate support zone from the red Tenkan-sen line at 34,548 until the 50-day SMA at 34,023. Further retreats in the price could test the Ichimoku cloud ahead of the support section of 33,287-33,564. Furthermore, an intense pullback could even reach the 100-day SMA at 32,811.Summarizing, the index is sustaining a bullish tone despite absent market drivers to boost directional momentum.
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