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Technical Analysis – JP 225 index tops near channel’s upper band

Posted on May 16, 2023 at 11:31 am GMT

Japan’s 225 stock index (cash) flatlined near a 1½-year high of 29,918 and at the upper boundary of a bullish channel after a remarkable two-week rally. The RSI and the Stochastic oscillator in the four-hour chart seem to have peaked in the overbought region, flagging a potential downside reversal. The tiny candlesticks at the top of the uptrend could be another indication that the latest upswing is overdone. If the bears take charge below 29,840, the price may seek shelter somewhere between 29,650 and 29,540. The [..]

Technical Analysis – US 500 index recovers from banking breakdown

Posted on March 30, 2023 at 12:12 pm GMT

The US 500 stock index (cash) rose back above the 4,000 level yesterday, recouping the bearish breakdown caused by SVB’s collapse. The bulls gained extra positive momentum over the past couple of hours, deviating clearly above the support-turned-resistance trendline from October. Technically, that increases the odds for another extension to 4,070, where the 61.8% Fibonacci retracement of the 4,195-3,809 downtrend is placed. Not far above, the tentative descending trendline at 4,085 could be a make-or-break point. If the bulls breach that [..]

Technical Analysis – GER 40 index crashes as bank risks stretch to Europe

Posted on March 15, 2023 at 12:52 pm GMT

The German 40 index (cash) returned to losses as Credit Suisse came to the center of the bank turmoil on Wednesday, with the index plummeting to a three-month low of 14,695. From a technical perspective, the index could not find enough buyers to overcome the 20-period simple moving average (SMA) on the four-hour chart despite stubbornly testing the line over the past couple of sessions. Consequently, the price plunged below the 14,900 support area, which overlaps with the 38.2% Fibonacci retracement of [..]

Technical Analysis – US 500 index meets broken trendline

Posted on March 13, 2023 at 12:30 pm GMT

The US 500 futures (cash) came under renewed downside pressure last Friday as cracks in the US banking sector resurfaced, with the index drifting lower to mark a new one-month low at 3,845. The sharp decline squeezed the price below the 200-day simple moving average (SMA), which had been acting as support since the end of January, increasing fears that the sell-off may continue. While the negative trajectory in momentum indicators keeps the bias on the bearish side, the broken resistance [..]

Technical Analysis – US 30 index may remain under pressure

Posted on March 10, 2023 at 12:42 pm GMT

The US 30 index (cash) plummeted to 31,979 on Thursday, exiting the five-month-old range to mark a new lower low. The aggressive decline squeezed the price below the 200-day simple moving average (SMA), which acted as a firm support twice since the start of November, increasing the risk for more downside. The negative slope in the momentum indicators is endorsing the bearish case, shifting attention to the 38.2% Fibonacci retracement of the 36,950-25,583 downleg at 31,772. Slightly lower, sellers could test the [..]

Technical Analysis – US 100 index fails to conquer downtrend line and 200-day SMA

Posted on January 24, 2023 at 2:02 pm GMT

The US 100 cash index is flirting with the long-term downtrend line, taken from the peak in March 2022 and the 200-day SMA around 11,970. The index has been consolidating within a sideways channel with upper boundary the 12,080 resistance and lower boundary the 10,660 support. The RSI is sloping down in the positive region; however, the MACD is still extending its momentum above its trigger and zero lines. Traders would be more eager to engage in buying activities if [..]

Technical Analysis – US 500 index remains in tight range below short-term SMAs

Posted on January 3, 2023 at 10:18 am GMT

The US 500 cash index is looking more neutral as prices are consolidating within the 3,765 support and the 3,900 resistance. However, the upside momentum appears to be stronger as prices are attempting to climb above the 50- and the 100-day simple moving averages (SMAs) near the 3,900 barrier. The upside bias is also supported by the RSI, which has been hovering near the 50-neutral level, while the MACD is surpassing its trigger line. Should the pair manage to strengthen its positive [..]

Technical Analysis – Dollar index hovers near 5-month low with strong negative momentum

Posted on December 14, 2022 at 11:14 am GMT

The dollar index dived to a fresh five-month low of 103.50 on Tuesday, retaining the selling interest that started from the 20-year peak of 114.70. Looking at momentum oscillators on the daily chart, they suggest further declines may be on the cards in the short-term. The RSI is below its neutral 50 line, detecting negative momentum, and is also pointing downwards. The MACD, already negative, lies below its trigger line. Should prices decline further, immediate support could be found around [..]

Technical Analysis – US 500 index stands above the 200-day SMA but for how long?

Posted on December 5, 2022 at 10:08 am GMT

The US 500 index is losing some momentum after an aggressive buying interest above the 200-day simple moving average (SMA) and the 4,000 round number in the preceding week. Technically, the RSI indicator is moving lower in the positive region, while the MACD is edging sideways near its trigger line and above the zero level. Both are suggesting a bearish correction. On the other hand, the 100- and 50-day SMAs are heading upwards, suggesting that the next movement would be [..]

Technical Analysis – US 30 index bulls meet previous high; positive outlook remains

Posted on November 24, 2022 at 10:36 am GMT

The US 30 cash index is trading around the vicinity of 34,280, that being a high from August 16. The price is having a second attempt to break this level; however, the technical oscillators are suggesting a horizontal trajectory. The RSI is flattening near the overbought level, while the MACD is moving sideways near its trigger line in the positive area. Should buyers drive above the 34,280 resistance, they could encounter initial strengthened resistance from 35,500, taken from the peak [..]

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