Thu, Feb 09, 2023 @ 12:10 GMT
HomeContributorsTechnical AnalysisUS 30 Index Eases after Hitting 5-Month High; Remains in Bullish Outlook

US 30 Index Eases after Hitting 5-Month High; Remains in Bullish Outlook

US 30 index has been in a flying mode in the past four consecutive days, creating a new more than a five-month high of 25691.10. The upward pattern started at the late of March, however, today, the price seems to have a red day.

In addition, the technical indicators are turning slightly to the downside as the RSI bounced off the overbought level and the stochastic oscillator is flattening in the positive area.

As prices are still holding above the simple moving averages (SMAs) in the daily timeframe the next level to have in mind is the 25830 resistance barrier, taken from the peak on February 27. A jump above this strong obstacle could open the way towards the record high of 26700.

On the flip side, a bearish retracement could send prices until the 40-day SMA, which stands near the 24916.00 support level. Below that level, the 20-day SMA could also act as support barrier near 24695.19, before heading south towards the long-term ascending trend line around 24500.00.

Overall, both the short- and medium-term outlooks are currently looking bullish, though caution is warranted in the near-term as there are signs of an overbought market.
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