US 30 stock index (Cash) retreated from the vicinity of 29,168, that being the 150.0% Fibonacci extension of the down wave from 27,632 to 24,560. The positive picture seems safeguarded by the advancing 50- and 100-day simple moving averages (SMAs), and may receive a boost from the approaching bullish crossover of the 200-day SMA by the 100-day one. Additionally, the progressing Ichimoku lines further service the ascent in the index.
At the moment the short-term oscillators suggest the recoil from the latest high may possibly extend slightly lower, despite the dictating broader optimistic picture. The MACD, in the positive region, floats below its red trigger line, while negative momentum grows in the RSI and the stochastic oscillator.
If selling interest persists, immediate limitations may occur from the 28,071 low, prior to a key support section of 27,447 – 27,632 where the blue Kijun-sen line also lies. Dipping below, the 27,178 inside swing high – coupled with the 50-day SMA – may impede the price from testing the cloud. Steeper declines may be challenged by the critical support zone from 26,321 to 26,000. This involves an upcoming bullish crossover between the 200- and 100-day SMAs and the trough from July 30.
If buyers manage to seize control, early friction may arise from the red Tenkan-sen line presently at 28,662, ahead of the 150.0% Fibo extension of 29,168. Overrunning this, the all-time-high of 29,582 may provide adequate resistance, attempting to prevent the index from appreciating further towards the 176.4% Fibo extension of 29,975, around the 30,000 psychological number.
In brief, the index preserves a short-to-medium-term bullish bias above 27,447. Moreover, positive sentiment may be reinforced should the nearing bullish SMA crossover take shape.
