US 30 Breaks Through Resistance at 38560.0

Market Analysis – May 8

The US 30 index has demonstrated remarkable resilience as it shattered the resistance level of 38560.0, signifying a notable development in its price action.

Throughout February and March, the US 30 retraced multiple times to the support zone around 38560.0, consolidating before resuming its upward trajectory. Eventually, the index surged to 39986.0, encountering formidable resistance, which led to a subsequent price downturn in April.

US 30 Key Levels:

Demand Levels: 37238.0, 35976.0, 35054.0
Supply Levels: 39017.0, 39986.0, 40000.0

Long-term Trend: Bullish

A double-top pattern emerged at the resistance level of 39986.0, coinciding with overbought conditions indicated by the Stochastic indicator. This resulted in a price plunge below the critical demand level of 38560.0, ultimately descending to 37238.0.

Following the downturn, the previous support zone at 38560.0 transitioned into a resistance barrier as the price breached below it. In April, amidst overbought conditions highlighted by the Stochastic indicator, the market witnessed a resurgence, breaking above the resistance level of 38560.0. This breakthrough was characterized by daily candles ascending above the Moving Average (Periods 9 and 21), affirming the bullish sentiment.

Short-term Trend: Bullish

Currently, the market is on an upward trajectory, aiming towards the swing high of 39986.0. However, a retracement is anticipated before reaching the target due to the overbought state of the Stochastic indicator on both higher and lower timeframes, indicating potential short-term corrections.

Best Forex Signals 2024

You can purchase Lucky Block here.  Buy LBLOCK

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.