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US 30 Index Consolidates; Remains Cautiously Positive

The Wall Street 30 stock index’s (cash) positive directional momentum appears to have weakened as it has eased slightly from the new all-time-high of 29,401. The index looks to be a bit flat – something also backed by the Ichimoku lines.

Moreover, the short-term oscillators reflect a stall in the positive move with the MACD declining below its red trigger line in the positive zone, and the RSI, falling in bullish territory under a trendline. That said, the upward slopes in all simple moving averages (SMAs) and the 200-day SMA merging with the supportive trendline, warrant some caution of a prevailing positive trend.

If buyers reemerge, initial resistance could come from the fresh all-time-high of 29,401. Overtaking the peak, the 29,500 barrier may play out ahead of the higher obstacle at 29,620, which is the 261.8% Fibonacci extension of the down leg from 28,202 to 27,324. If buyers persist, the 30,000 psychological number could draw traders’ attention.

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Otherwise, steering down, initial support could rest around the 50-day SMA at 29,125, the 29,053 level and the cloud. Surpassing this, the 28,910 support, which is the 23.6% Fibonacci retracement of the up wave from 27,324 to 29,401, and the 100-day SMA at 28,886, could challenge the bears ahead of the low of 28,770. Diving deeper, a breach of the 38.2% Fibo of 28,605 and supportive trendline could send the price towards the 200-day SMA currently at 28,501 and the 50.0% Fibo of 28,360.

Overall, the short- and medium-term biases remain bullish as the index holds above the 200-day SMA and the 28,116 trough.