Technical Analysis – US 30 index retains a positive outlook above 22,788
May 29, 2020 12:26 pm
US 30 Index’s (Cash) bullish tone is intact with the price currently resting above the 25,219 level, that being the 61.8% Fibonacci retracement of the down leg from the all-time high of 29,582.61 to the 40½-month low of 18,170. The price is sponsoring gains trading above the Ichimoku cloud and the supportive trend line. Additionally, the bullish Ichimoku lines and the rising simple moving averages (SMAs) further endorse an improving picture.
Glancing at the short-term oscillators, they display the recent weakness in positive momentum but lean towards an upside tendency. The MACD has slipped below its red signal line but remains in positive territory, while the RSI points up as it hovers above its neutral mark. Moreover, the %K line has completed a bullish crossover protruding out of the oversold section.
If buying interest picks up, some hindrance may surface from the red Tenkan-sen line at 25,551, ahead of the nearby resistance of 25,840 and the 25,992 peak, from March 6. Overcoming this may send the index to challenge the important 76.4% Fibo of 26,885 and the key 27,095 peak overhead. A step above may then meet the 27,541 peak from February 26.
Should sellers push under the immediate support area from the 61.8% Fibo of 25,219 to the 25,008 low, the 50-period SMA at 24,879 may slow their descent towards the cloud. The next shove down would ultimately have to conquer all the supportive obstacles lying within the Ichimoku cloud, strengthening a negative dive towards the 23,328 barrier and 22,788 trough.
For now, the short-term timeframe is sustaining its positive bearing holding above 22,788, the cloud, the trend line and the SMAs plus a break above 27,095 could see the index accelerate higher.
US 30 Index’s (Cash) bullish tone is intact with the price currently resting above the 25,219 level, that being the 61.8% Fibonacci retracement of the down leg from the all-time high of 29,582.61 to the 40½-month low of 18,170. The price is sponsoring gains trading above the Ichimoku cloud and the supportive trend line. Additionally, the bullish Ichimoku lines and the rising simple moving averages (SMAs) further endorse an improving picture.
Glancing at the short-term oscillators, they display the recent weakness in positive momentum but lean towards an upside tendency. The MACD has slipped below its red signal line but remains in positive territory, while the RSI points up as it hovers above its neutral mark. Moreover, the %K line has completed a bullish crossover protruding out of the oversold section.
If buying interest picks up, some hindrance may surface from the red Tenkan-sen line at 25,551, ahead of the nearby resistance of 25,840 and the 25,992 peak, from March 6. Overcoming this may send the index to challenge the important 76.4% Fibo of 26,885 and the key 27,095 peak overhead. A step above may then meet the 27,541 peak from February 26.
Should sellers push under the immediate support area from the 61.8% Fibo of 25,219 to the 25,008 low, the 50-period SMA at 24,879 may slow their descent towards the cloud. The next shove down would ultimately have to conquer all the supportive obstacles lying within the Ichimoku cloud, strengthening a negative dive towards the 23,328 barrier and 22,788 trough.
For now, the short-term timeframe is sustaining its positive bearing holding above 22,788, the cloud, the trend line and the SMAs plus a break above 27,095 could see the index accelerate higher.
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