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.
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.