The US 30 index has recovered a good chunk of its losses in the past couple of weeks and is now posting higher highs and higher lows on the four-hour chart above a short-term uptrend line drawn from the March 23 bottom. The immediate-term outlook therefore seems to have turned positive, and for that to change, the bears would need to pierce below the 22,350 area and the uptrend line.
Momentum oscillators endorse the improving picture, with the RSI looking ready to climb above 70 and the MACD resting slightly above its red trigger line.
If the rally continues, the next cluster of resistance may lie between 24,700 and 25,000, which were the low of February and the peak of March 10, respectively. Even higher, the bulls could struggle around 26,000, which capped the rebound on March 6, on their way towards the crucial 27,100 region.
Should sellers retake the wheel and push below 23,600, support may then come from the crossroads of the 22,350 zone and the aforementioned uptrend line. Another move beneath that congested territory would turn the picture back to neutral, opening the door for a test of 21,500.
Summarizing, the outlook in the very near term looks positive. However, a dip back below 22,350 could change that.
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