Technical Analysis – US 30 index consolidates near highs as bearish pressures fade

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.

Latest News

Technical Analysis – JP 225 index finds footing after yesterday’s strong pullback

Technical Analysis – US 30 index consolidates near highs as bearish pressures fade

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.