Technical Analysis – US 30 index resumes its climb to unmapped peaks

The US 30 stock index (Cash) is stepping up to fresh all-time highs, currently around 33,210, after its latest bounce off the Ichimoku cloud’s upper frontier at 30,542. The bullish Ichimoku lines are endorsing the recent positive sentiment in the index, while the advancing simple moving averages (SMAs) are safeguarding the bullish structure.

Furthermore, the short-term oscillators are conveying encouraging signals in upside momentum. The MACD, in the positive region, is growing above its red trigger line, while the RSI is climbing in overbought territory. The stochastic oscillator is promoting steady gains in the index, as the %K line has yet to signal any waning in momentum.

Maintaining the current trajectory, the index may soon encounter resistance at the 33,638 level, which happens to be the 261.8% Fibonacci extension of the down leg from 28,900 to 26,065. Should the index continue to soar past this heavy border, the price may then attempt to test the 34,000 handle and the 34,500 hurdle.

Otherwise, if the price pivots downwards, initial support could arise from the 31,669-32,149 support section, which also holds the Ichimoku lines. If sellers dive beneath this boundary, the nearby 50-day SMA at 31,425 could provide some footing. A deeper retracement may then challenge the critical trough of 30,542 - reinforced by the 100-day SMA and the cloud’s floor. If this barrier surrenders too, the index may then seek support around the 29,856 obstacle.

Summarizing, the index seems to maintain a strong bullish tone above the SMAs and the 31,669-32,149 support zone.

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