The US 30 index has been advancing for the most part in recent days, reaching an all-time high of 24,678.00 during yesterday’s trading.
The Tenkan-sen line being above the Kijun-sen line is a positive alignment pointing to a bullish short-term picture for the index. The RSI, which has been moving higher in recent weeks, supports a positive view in the short-term, though it has crossed into overbought territory above the 70 level, rendering a short-term pullback a possibility. Turning to the stochastics, the %K line moving below the slow %D line also suggests that a pullback might take place in the very short-term.
Should the index continue advancing, resistance could be met around yesterday’s all-time high of 24,678. Stronger bullish movement might find a barrier at 25,000, this being a potential psychological mark.
On the downside, support might be found around the current level of Tenkan-sen at 23,373.50 and further below – and given sharper declines – the Kijun-sen at 23,959.55.
The medium-term picture is clearly bullish with the index recording higher highs and higher lows over the last number of months. Price action is also taking place above the Ichimoku cloud as well as above the 50- and 100-day moving average lines, with both lines maintaining a positive slope.
Overall, the index is projecting a positive picture in the short- and medium-term with some caveats – such as RSI being in overbought territory – currently being in place in the short-term.
