Technical Analysis – US 500 index rises after another bounce off 50-day SMA
May 8, 2023 10:28 am
The US 500 (cash) index added more than 2% on Friday after another rebound off the 4,050 support level and the 50-day simple moving average (SMA). The index has been moving sideways since March 31 with the technical oscillator mirroring the latest price action. The RSI is flattening above the 50 level, while the MACD is falling beneath its trigger line in the positive area.
Should the pair manage to strengthen its positive momentum, the next resistance could come around the 4,170-4,200 region. Above this zone, the next target could come in at 4,325, confirming the upside structure in the medium-to long-term timeframes.
However, if prices are unable to break into the upper half of the range in the next few sessions, the risk would shift back to the downside, with the lower band once again coming into focus at 4,050. A drop below the simple moving averages (SMAs) would take the market towards the uptrend line at 3,970 ahead of another longer-term diagonal line at 3,950.
All in all, the index is neutral in the short-term picture and bullish in the medium- and long-term outlooks.
The US 500 (cash) index added more than 2% on Friday after another rebound off the 4,050 support level and the 50-day simple moving average (SMA). The index has been moving sideways since March 31 with the technical oscillator mirroring the latest price action. The RSI is flattening above the 50 level, while the MACD is falling beneath its trigger line in the positive area.
Should the pair manage to strengthen its positive momentum, the next resistance could come around the 4,170-4,200 region. Above this zone, the next target could come in at 4,325, confirming the upside structure in the medium-to long-term timeframes.
However, if prices are unable to break into the upper half of the range in the next few sessions, the risk would shift back to the downside, with the lower band once again coming into focus at 4,050. A drop below the simple moving averages (SMAs) would take the market towards the uptrend line at 3,970 ahead of another longer-term diagonal line at 3,950.
All in all, the index is neutral in the short-term picture and bullish in the medium- and long-term outlooks.
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