Contributors Technical Analysis US30 Index Uptick Not Enough to Alter Bearish Outlook

US30 Index Uptick Not Enough to Alter Bearish Outlook

The US 30 index has witnessed an uptick over the last few trading sessions as the negativity in the price seems to be waning. However, the index continues to record a series of successive lower highs and lower lows, supporting an overall bearish outlook.

Despite the bearish outlook, short-term momentum oscillators are reflecting a slightly positive bias as the RSI has recently crossed above its 50 neutral mark. Moreover, the MACD is found above its red signal line, although still below zero, which indicates that the negative momentum in the price might be fading.

The bulls seem to have resurfaced over the last few trading sessions. Should they manage to push the price above the 50-day simple moving average (SMA) currently at 34,500, buyers could then target the region which includes the 200-day SMA and the 35,090 level. Crossing above this area could turn the fortunes around for the pair, opening the door towards the September high at f 35,500.

However, if the bears seize back control, the first line of defense could be found at the December low of 33,960. A break below this point could pave the way towards the consecutive hurdles of 33,520 and 33,145. Crossing below the latter could intensify selling pressures, sending the price to test the 32,230 obstacle.

In brief, despite the fact that the index’s bias seems to be improving, the overall outlook remains bearish amid successive lower highs. For sentiment to change, buyers would need to break above the 200-day SMA currently at 34,990.

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