XM does not provide services to residents of the United States of America.

Technical Analysis – US 30 index at risk of bearish breakdown



The US 30 index (cash) has been clearly trending up since departing from July’s low of 30,128, recently topping at a four-month high of 34,279 before pulling lower.

In the four-hour chart, the bears are trying to dominate below the 20-period simple moving average (SMA) at 33,922, which has been strongly protective over the past week. From a technical perspective, they may succeed as the RSI is printing new lower lows within the bullish area, the MACD is decelerating below its red signal line, and the stochastics are heading towards their 20 oversold level, all promoting further declines.

Perhaps an extension below the nearby support of 33,825 could activate more aggressive selling orders, squeezing the price towards the 50-period SMA at 33,470. The channel's lower trendline is within breathing distance along with the 23.6% Fibonacci retracement of the 30,128 – 34,279 upleg at 33,299 and may immediately come to the rescue if sellers stay in charge, blocking the way towards the 100-period SMA at 33,000..

Should the 20-period SMA stand firm, the price may push for a close above the 34,174 barrier, and more importantly for a continuation above the bullish channel seen at 34,440. Claiming that ceiling, the uptrend may strengthen towards the next barrier at 34,890, last active during the March-April period.

In summary, the short-term risk for the US 30 index is tilted to the downside, with traders likely waiting for a break below 33,825 to further reduce exposure in the market.

Latest News

Technical Analysis – BTCUSD advances towards all-time highs


Technical Analysis – AUDUSD gets bearish vibes

A

Technical Analysis – WTI oil futures in fierce battle with 50.0% Fibo

O

Technical Analysis – GER 40 index marks highs after highs

G

G

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.

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