Fri, Jun 24, 2022 @ 22:32 GMT
HomeContributorsTechnical AnalysisUS 30 Index Exceeds 26,000 to Record Fresh All-time High; Bullish though...

US 30 Index Exceeds 26,000 to Record Fresh All-time High; Bullish though RSI Overbought

The US 30 index rose to a fresh record high of 26,084.50 during today’s trading after significant advancing in the days that preceded.

The positively aligned and steep upward sloping Tenkan- and Kijun-sen lines are indicative of the bullish sentiment that is in place in the short-term. The RSI, which is rising as well, is also supporting the view for bullish momentum. The indicator though is well above the 70 overbought level, hinting to the possibility for a pullback from record high levels.

A decline could find support around the current level of the Tenkan-sen at 25,491.70, with steeper declines shifting the focus to the Kijun-sen at 25,146.20.

Despite the index breaking above 26,000, the area around this mark which could be of psychological significance, might still be providing some resistance to further gains. A more conclusive move that would distance the index from 26,000 to the upside could lead to stronger bullish movement, turning the attention to the 27,000 handle, this being another potential psychological level. Some points below 27,000 – for example the 26,500 level – might also function as potential key levels, acting as barriers to further advancing.

The outlook in the medium-term is clearly bullish: the index is in an uptrend with price action taking place above both the 50- and 100-day moving averages, as well as the Ichimoku cloud. Moreover, both MAs maintain a positive slope.

Overall, the short-term bias is bullish with some warning signs from an overbought RSI and the medium-term picture is also bullish.

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