INDICES

Technical Analysis – US 30 stock index retests 3-year lows; death cross awaited

Posted on March 18, 2020 at 1:44 pm GMT

The US 30 index stretched its one-month rally to a three-year low of 19,899 on Tuesday before pulling slightly higher. The MACD seems to be losing momentum below its red trigger line, while the RSI is still hovering around its 30 oversold mark. Moreover, the red Tenkan-sen line is sloping down below the blue Kijun-sen line, thus all signaling a more cautious trading in the short term. Additionally, the 50- and the 200-day simple moving averages (SMAs) are in the process of completing a ‘death cross’. The market trend is likely to hold to the downside [..]

Technical Analysis – US 30 stock index rebounds from 3-year low; looks oversold after recent sell-off

Posted on March 13, 2020 at 10:55 am GMT

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 [..]

Technical Analysis – Dollar index bounces off 17-month low, closing the negative gap

Posted on March 10, 2020 at 1:53 pm GMT

US dollar index futures jumped above the 17-month trough of 94.60 today and spiked near the 96.00 number, filling the negative gap posted on Monday. The RSI penetrated the downtrend line to the upside in the oversold zone, suggesting a potential upside correction of the aggressive selling interest, while the MACD is still falling below its trigger and zero lines. If the market corrects higher, the bullish action may pause initially near the 23.6% Fibonacci retracement level of the downward wave from 99.80 to 94.60 [..]

Technical Analysis – US 500 stock index’s selling interest continues to 6-month trough

Posted on March 9, 2020 at 11:25 am GMT

The US 500 index (Cash) continues the sharp sell-off, extending its negative momentum towards a six-month low of 2,819. The outlook turned negative in the short-term with the MACD oscillator holding well below the trigger line in the bearish area, while the RSI is approaching the oversold zone with strong momentum. Also, the red Tenkan-sen line is moving south beneath the blue Kijun-sen line, suggesting a bearish structure. If traders continue to sell, they could find immediate support at the 2,755 region, [..]

Technical Analysis – US 100 index finds support at 200-SMA; could trade neutral in short-term

Posted on March 3, 2020 at 11:03 am GMT

US 100 stock index found strong footing near the 200-day simple moving average (SMA) once again, refusing to slip below the 8,000 number. In the short-term, the market could follow a neutral path, holding above its recent lows, as the RSI is moving towards its 50 neutral mark and the MACD is stabilizing within the bearish area. The 50- and 20-day SMAs currently at 9,100 and 9,267 respectively could halt any upside extension, while the 9,500 barrier could deter any [..]

Technical Analysis – US 30 stock index dives below ascending channel

Posted on February 27, 2020 at 10:32 am GMT

The US 30 stock index faced strong selling this week that forced the price to abandon the 10-month old channel and drop to a four-month low of 26,483, where the 38.2% Fibonacci of the 21,596-29,582 upleg happens to be. A rebound or some stabilization near recent lows cannot be ruled out as the RSI and the Stochastics flag oversold conditions. Yet, with the price having breached the channel significantly to the downside and the 20-day simple moving average (SMA) set to cross [..]

Technical Analysis – US 500 index plunges to 4-month low; biggest fall since December 2018

Posted on February 27, 2020 at 7:33 am GMT

The US 500 index (Cash) has been in free fall mode since February 20 as it hit resistance at the record high of 3,392.21. The price is creating the biggest sell-off run since December 2018 and is approaching the nine-month ascending trend line, posting a fresh four-month low near the 200-day simple moving average (SMA) at 3,060. From a technical viewpoint, the moving averages are pointing down, while the MACD oscillator sank to the negative territory with strong momentum. Moreover, the RSI slipped to the oversold area and [..]

Technical Analysis – UK 100 index slumps below long-term supportive trendline

Posted on February 24, 2020 at 2:03 pm GMT

The UK 100 stock index slumped below the supportive trendline that has been holding since the end of 2018, increasing concerns that the market may be changing direction to south. The downside reversal in the RSI, which is currently heading towards its 30 oversold mark, is a negative signal that the bearish action may get new legs in the short-term. Yet, a confirmation could only come below the 50% Fibonacci of 7,132 of the 6,535 – 7,728 up leg. If such an incident materializes, the [..]

Technical Analysis – JP 225 index collapses to 4-month low; 200-SMA acts as support

Posted on February 24, 2020 at 10:33 am GMT

Japan’s 225 stock index (cash) collapsed on Monday as the coronavirus cases outside China increased, shifting funds towards safe havens. The index dived straight to the 200-day simple moving average (SMA) to 4-month lows, losing nearly 4.0% From Friday’s closure. Should the 200-day SMA, which currently stands around the 61.8% Fibonacci of the 21,054-24,162 upleg, prove an easy obstacle, the market could experience additional losses probably towards the 21,863 barrier as the falling RSI suggests. Lower, the next stop could be near 21,480. Otherwise, an upside reversal [..]

Technical Analysis – US 500 index plummets to 3-week low after gap down

Posted on February 24, 2020 at 10:05 am GMT

The US 500 index (Cash) declined considerably today after the gap down, retreating beneath the 50-day simple moving average (SMA). The price completed a three-week low at 3,249 with the technical indicators moving south. The MACD is extending its bearish structure below the trigger line, while the RSI dropped in the negative territory, strengthening the negative momentum. In case of steeper declines, the market could meet immediate support at the 23.6% Fibonacci retracement level of the up leg from 2,729 [..]

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