The US 30 index rose to a fresh record high of 26,084.50 during today’s trading after significant advancing in the days that preceded.
The positively aligned and steep upward sloping Tenkan- and Kijun-sen lines are indicative of the bullish sentiment that is in place in the short-term. The RSI, which is rising as well, is also supporting the view for bullish momentum. The indicator though is well above the 70 overbought level, hinting to the possibility for a pullback from record high levels.
A decline could find support around the current level of the Tenkan-sen at 25,491.70, with steeper declines shifting the focus to the Kijun-sen at 25,146.20.
Despite the index breaking above 26,000, the area around this mark which could be of psychological significance, might still be providing some resistance to further gains. A more conclusive move that would distance the index from 26,000 to the upside could lead to stronger bullish movement, turning the attention to the 27,000 handle, this being another potential psychological level. Some points below 27,000 – for example the 26,500 level – might also function as potential key levels, acting as barriers to further advancing.
The outlook in the medium-term is clearly bullish: the index is in an uptrend with price action taking place above both the 50- and 100-day moving averages, as well as the Ichimoku cloud. Moreover, both MAs maintain a positive slope.
Overall, the short-term bias is bullish with some warning signs from an overbought RSI and the medium-term picture is also bullish.
