Sat, May 08, 2021 @ 22:52 GMT
Home Contributors Technical Analysis US 30 Stock Index Halts Rally Near Familiar Resistance Line

US 30 Stock Index Halts Rally Near Familiar Resistance Line

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.

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