US 30 stock index (Cash) is facing the capping 50-period simple moving average (SMA) at 29,502, after improving a bit off the lower Bollinger band at 29,195. The index, ever since it logged a fresh all-time-high of 30,091 on November 9, has been trading in a ranging market between 28,838 and 30,091. That said, the flattening 50-period SMA and the conflicting signals in momentum within the short-term oscillators, promote a developing horizontal picture.
The MACD is in the negative zone slightly below its red trigger and zero lines, while the RSI is rising towards its 50 threshold. Nonetheless, the advancing 100- and 200-period SMAs are sponsoring positive price action and could play a crucial part in maintaining a bullish structure.
Pushing up, initial limitations may arise from the area surrounding the mid-Bollinger band, that being from the 50-period SMA at 29,502 until the 29,627 barrier. Climbing higher the tough resistance section of 29,957-30,091, involving the upper Bollinger band and the all-time-high, could try to suppress further advancing in the price. However, if buying interest surges, the index may aim for the 30,405 and 30,745 obstacles, which are the 150.0 and 161.8% Fibonacci extensions of the down wave from 28,957 to 26,065.
Alternatively, steering the price downwards may hit early support at the 29,195 level and the lower Bollinger band at 29,130. Next, the formed foundation of 28,838-28,957 may attempt to rescue the positive bias. Should this border fail to do so, the index may tumble towards the 28,560 boundary and the adjacent 100-period SMA at 28,536, ahead of the 200-period SMA at 28,414.
Overall, a nudge above the 50-period SMA may strengthen the neutral-to-bullish picture. Yet, ultimately a break either below 28,838 or above 30,091 could see a decisive direction unfold.
