Technical Analysis – US 30 cash index range-trading continues
June 29, 2023 8:27 am
The US 30 cash index bounced off its 50-day simple moving average (SMA) and it is now hovering around the 33,754 area. The bulls have managed to record a series of higher lows and they are apparently looking ahead to the recent 34,577 high in their attempt to establish a more sustained bullish trend. However, they firstly have to overcome the current market lull that is clearly depicted in the relative tightening of the Bollinger bands.
Similarly, the momentum indicators appear to have taken a back seat at this juncture. The Average Directional Movement Index (ADX) is hovering below its 25-threshold and signaling a range-trading market, and the RSI is moving sideways, a tad above its 50-midpoint. Even the stochastic oscillator appears to be embracing the quiet market conditions as it is gliding towards the middle of its range.
Should the bears decide to grab the market reins, they would try to overcome the arguably very important 33,348-33,600 area. The combination of the 50- and 100-day simple moving averages (SMAs), the October 1, 2021 low and the October 13, 2023 upward sloping trendline means that the bears’ determination would really be put to the test there. Even lower, the 32,767-33,028 range will probably prove tougher to crack than currently anticipated.
On the other hand, the bulls would love a retest of the August 16, 2022 high at 34,280 but they firstly have to break the December 2, 2022 downward trendline. The December 13, 2022 high at 34,930 would be the next aim, a tad below the busier 35,091-35,496 range defined by the April 21, 2022 and May 10, 2021 highs respectively.
To sum up, with the path of least resistance being higher prices, the US 30 bears need to act soon if they wish to stage a significant pullback towards the 33,000 area.
The US 30 cash index bounced off its 50-day simple moving average (SMA) and it is now hovering around the 33,754 area. The bulls have managed to record a series of higher lows and they are apparently looking ahead to the recent 34,577 high in their attempt to establish a more sustained bullish trend. However, they firstly have to overcome the current market lull that is clearly depicted in the relative tightening of the Bollinger bands.
Similarly, the momentum indicators appear to have taken a back seat at this juncture. The Average Directional Movement Index (ADX) is hovering below its 25-threshold and signaling a range-trading market, and the RSI is moving sideways, a tad above its 50-midpoint. Even the stochastic oscillator appears to be embracing the quiet market conditions as it is gliding towards the middle of its range.
Should the bears decide to grab the market reins, they would try to overcome the arguably very important 33,348-33,600 area. The combination of the 50- and 100-day simple moving averages (SMAs), the October 1, 2021 low and the October 13, 2023 upward sloping trendline means that the bears’ determination would really be put to the test there. Even lower, the 32,767-33,028 range will probably prove tougher to crack than currently anticipated.
On the other hand, the bulls would love a retest of the August 16, 2022 high at 34,280 but they firstly have to break the December 2, 2022 downward trendline. The December 13, 2022 high at 34,930 would be the next aim, a tad below the busier 35,091-35,496 range defined by the April 21, 2022 and May 10, 2021 highs respectively.
To sum up, with the path of least resistance being higher prices, the US 30 bears need to act soon if they wish to stage a significant pullback towards the 33,000 area.
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