Technical analysis – US 30 index losing steam, cautiously negative bias in place
May 4, 2018 1:26 pm
The US 30 index has been losing steam recently. It was rejected from its 100-day moving average (MA) on April 18 and has edged lower since, finding support near the 23,520 zone on May 3, and subsequently rebounding to close the day just above its 200-day moving average.
A cautiously negative picture is also supported by the index’s short-term oscillators. The RSI is currently below 50, detecting negative momentum, and is also pointing to the downside. The MACD, already negative, has just crossed below its red trigger line and looks to be heading lower as well.
In case of further declines in the short-run, immediate support may be found near the 200-day MA, which rests at 23,730. A downside break could open the way for another test of the 23,520 area, with steeper declines possibly aiming for the 23,340 territory, marked by the low of April 2. Further down, support may be found at 23,116, the trough from February 6. A potential break of that area too would mark a lower low on the daily chart, increasing the probability for further declines, perhaps towards the September 20 high of 22,420.
On the upside, advances in prices could encounter resistance at 24,500, the index’s peak from April 30. If buyers manage to overcome that zone, the 24,850 hurdle may come into view – notice that the 100-day MA is not far above, at 24,890. Higher still, sell orders may be found initially near the round figure of 25,500 – which is also the high of March 12 – and subsequently at 25,820, the top of February 27.
The US 30 index has been losing steam recently. It was rejected from its 100-day moving average (MA) on April 18 and has edged lower since, finding support near the 23,520 zone on May 3, and subsequently rebounding to close the day just above its 200-day moving average.
A cautiously negative picture is also supported by the index’s short-term oscillators. The RSI is currently below 50, detecting negative momentum, and is also pointing to the downside. The MACD, already negative, has just crossed below its red trigger line and looks to be heading lower as well.
In case of further declines in the short-run, immediate support may be found near the 200-day MA, which rests at 23,730. A downside break could open the way for another test of the 23,520 area, with steeper declines possibly aiming for the 23,340 territory, marked by the low of April 2. Further down, support may be found at 23,116, the trough from February 6. A potential break of that area too would mark a lower low on the daily chart, increasing the probability for further declines, perhaps towards the September 20 high of 22,420.
On the upside, advances in prices could encounter resistance at 24,500, the index’s peak from April 30. If buyers manage to overcome that zone, the 24,850 hurdle may come into view – notice that the 100-day MA is not far above, at 24,890. Higher still, sell orders may be found initially near the round figure of 25,500 – which is also the high of March 12 – and subsequently at 25,820, the top of February 27.
Related Posts: