US 30 Stock Index Halts Rally Near Familiar Resistance Line

Technical analysis of Forex market

The US 30 index (cash) gave up some ground after unlocking a new record high of 32,072 near the key resistance line, which connects all the peaks from June onwards.

The upper boundary of the Ichimoku cloud and the 23.6% Fibonacci of the 26,065 – 32,072 up leg, however, managed to stabilize the downward correction and help the pair set a foothold above the 50-day simple moving average (SMA).

While the weak momentum in the MACD and the sideways move in the RSI are currently doubting any meaningful upside movement in the market, a close above the 31,640 barrier could boost buying appetite towards the all-time high of 32,072. The 33,000 psychological mark could be the next target if the bullish pressure persists.

If sellers drive below the 23.6% Fibonacci of 30,654, a firm support could develop somewhere between the 100-day SMA, the bottom of the cloud, and the 38.2% Fibonacci of 29,777. A more aggressive decline may head for the 50% Fibonacci of 29,068 before all attention turns to the 200-day SMA.

In brief, the US 30 index is looking neutral in the short-term picture, where a break above 31,640 or below 30,654 could direct the market accordingly.