Technical Analysis – US 30 retreats from all-time highs but bullish forces linger

The US 30 cash index has witnessed a minor pullback from its all-time high at 36,560 earlier this month. However, the overall outlook for the index remains bullish as the price is found above its 200-period simple moving average (SMA).

The short-term momentum indicators reflect a positive bias for the index. The RSI is located above its 50 neutral mark, while the MACD is currently above its red signal line and it has recently crossed above zero.

Should the price surpass its 50-period SMA currently at 35,885, the bulls might then target the 36,045 obstacle. Advancing higher, that could pave the way towards the 36,320 barrier before testing the all-time high at 36,560. Breaching this crucial resistance, the price would enter uncharted waters, possibly testing the 161.8% Fibonacci extension of the November 8 to November 23 downleg at 37,265.

On the flip side, if the bears gain control, initial support could be found at the critical area which encapsulates the 20- and 200-period SMA currently found at 35,740 and 35,685, respectively. Breaching this crucial point could turn the fortunes around for the index, sending its price to test the 35,530 level before the sellers shift their attention to the 35,235 obstacle.

In brief, the overall outlook for the index is positive. For that to change, the sellers would need to break below the 200-period SMA.

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.