Technical Analysis – US 30 cash index bearish move could have legs
September 7, 2023 8:27 am
The US 30 cash index is recording another red candle as the bears are trying to push the index below the recent low of 34,024 and form a bearish structure of lower lows and lower highs. This appears to be the first proper reaction from the bears since the US 30 cash index set a new 17-month high of 35,686 on July 27, 2023.
The current bearish pressure is clearly depicted in the momentum indicators. More specifically, the RSI has again dipped below its midpoint, confirming the presence of a bearish tendency. Similarly, the Average Directional Movement Index (ADX) is trading sideways but remains above its 25-threshold and thus signals a muted bearish trend in the market. More significantly, the stochastic oscillator has broken below its moving average and is heading towards its oversold territory.
Should the bears remain committed to record a lower low, they could try to overcome the busy 34,199-34,280 area populated by the August 16, 2022 high and the 100-day simple moving average (SMA). They could then have the chance to test the support set by the 33,518-33,786 range that is populated by the 200-day SMA, the October 1, 2021 low and the 61.8% Fibonacci retracement of the January 5, 2022 – October 3, 2022 downtrend respectively.
On the flip side, the bulls are probably getting anxious. They could try to defend the 34,199-34,280 region and then push the US 30 cash index above the critical October 13, 2022 trendline. If successful, they could then consider having a go at the 34,199-34,390 range, which is defined by the December 13, 2022 high and the 50-day SMA.
To sum up, the US 30 cash index bears are riding the selling wave as they attempt to reverse the long-term bullish trend, but they need to register a lower low to keep their hopes alive.
The US 30 cash index is recording another red candle as the bears are trying to push the index below the recent low of 34,024 and form a bearish structure of lower lows and lower highs. This appears to be the first proper reaction from the bears since the US 30 cash index set a new 17-month high of 35,686 on July 27, 2023.
The current bearish pressure is clearly depicted in the momentum indicators. More specifically, the RSI has again dipped below its midpoint, confirming the presence of a bearish tendency. Similarly, the Average Directional Movement Index (ADX) is trading sideways but remains above its 25-threshold and thus signals a muted bearish trend in the market. More significantly, the stochastic oscillator has broken below its moving average and is heading towards its oversold territory.
Should the bears remain committed to record a lower low, they could try to overcome the busy 34,199-34,280 area populated by the August 16, 2022 high and the 100-day simple moving average (SMA). They could then have the chance to test the support set by the 33,518-33,786 range that is populated by the 200-day SMA, the October 1, 2021 low and the 61.8% Fibonacci retracement of the January 5, 2022 – October 3, 2022 downtrend respectively.
On the flip side, the bulls are probably getting anxious. They could try to defend the 34,199-34,280 region and then push the US 30 cash index above the critical October 13, 2022 trendline. If successful, they could then consider having a go at the 34,199-34,390 range, which is defined by the December 13, 2022 high and the 50-day SMA.
To sum up, the US 30 cash index bears are riding the selling wave as they attempt to reverse the long-term bullish trend, but they need to register a lower low to keep their hopes alive.
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