The US 30 (Cash) index has been in a free fall over the last couple of days, recording a fresh three-year low of 20,398.83. The price is shifting the strong bullish tendency of the previous years to a sharp bearish structure in the short-term. However, according to the technical indicators the market is looking oversold.
Technically, the MACD oscillator is stretching its negative momentum below the zero and trigger line, but the RSI is turning higher in the bearish territory, suggesting a potential upside correction.
If the pair continues the recent rebound from the three-year low, it could reach the 22,580 resistance, which is the 23.6% Fibonacci retracement level of the downward move from 29,582.61 to 20,398.83. More increases could drive the market towards the 23,420 barrier ahead of the 38.2% Fibonacci of 23,914.
On the negative scenario, the index could touch the 20,322 support, which stands marginally beneath the three-year low. Below that, the 19,737 area is coming next, registered on January 2017.
Overall, the US 30 index has been in a sell-off mode over the last month, erasing a three-year bullish rally. The medium-term moving averages are pointing down, confirming the negative bias.
