Technical Analysis – US 30 index consolidates above 200-MA; maintains bullish tone


Anthony Charalambous, XM Investment Research Desk

US 30 Index (Cash) has taken a breather, trading around the mid-Bollinger band after breaking above the 200-period simple moving average (SMA) on the four-hour chart. That said, the index sustains its bullish bearing and is aided by the supportive trend line drawn from March 23, which has merged with the upward-sloping 50-period SMA.

Moreover, the short-term oscillators are holding onto positive improvements in the price and could be boosted by the approaching bullish crossover of the 200-period SMA by the inclining 100-period one. The MACD, above zero but below its red trigger line, looks to reclaim it, while the RSI manages to keep above its 50 level. Additionally, the stochastic lines are currently bullish with room to move.

To the downside, initial fortified support could come at the 23,086 level, where the lower Bollinger band and the supportive trend line – fused with the 50-period SMA – overlap. Diving below this barrier, the 200-period SMA at 22,703 could interrupt the test of another tough support region from the 38.2% Fibo of 22,520 to the 100-period SMA at 22,215, which includes the 22,367 low. Successfully clearing these, the price may hit the 21,501 hurdle before the troughs within a region from the 23.6% Fibo of 20,854 to the 20,414 mark draw attention.

If buyers manage to steer above the 50.0% Fibo of 23,883 and the nearby 24,078 peak, the 25,052 swing high from March 10 may be next to challenge the climb. If the bulls’ efforts endure pushing above the 61.8% Fibo of 25,225, the 25,992 obstacle could move into the spotlight.

Overall, price’s next direction could come with a break out of the squeezed Bollinger bands either above 24,078 or below 23,086, setting the following short-term course.