HomeContributorsTechnical AnalysisUS30 Index Meets Support at 200-SMA; Bearish Forces Persist

US30 Index Meets Support at 200-SMA; Bearish Forces Persist

The US 30 index has retreated from its all-time high in early January amid strengthening negative momentum. Moreover, the index has crossed below the 50-period simple moving average (SMA), which is considered as a bearish sign for the near term.

Short-term momentum indicators are also reflecting a negative bias for the index, as the RSI is located below its 50 neutral mark. The MACD is found below zero and below its red signal line, indicating that negative momentum might be gaining further ground.

Should the bears remain in charge, initial support might be found at the region which includes the 35,825 level and the 200-period SMA currently at 35,800. A break below that area could pressure the price towards the 35,640 obstacle, before sellers eye the 35,430 hurdle. Crossing below the latter, could increase selling pressures, opening the door towards the 34,665 barrier.

On the flip side, if the bulls retake control, the first target might be the 36,125 resistance before shifting their attention towards the area which includes the 50-period SMA and the 36,240 level. A decisive move above the latter could restore positivity for the index, paving the way towards the 36,510 point. Surpassing this obstacle, the price could then test the 36,680 barrier before sellers shift their attention towards the all-time high at 36,950.

In brief, the short-term outlook for the index is cautiously bearish. For sentiment to change, buyers would need to drive the price above the 50-period SMA.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading