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Market Analysis – August 22
US 30 faces downward pressure, and buyers are struggling to maintain their strength against it. Sellers have made their presence felt, leading to a breakdown below the key zone at 35001.80 last week.
The bearish action was confirmed by the Moving Average crossover of the 9-day and 21-day periods. The market is, however, attracting more sellers above the 35001.80 level. Consequently, selling volatility increased as downward pressure intensified.
US 30 Market Zones
Resistance Zones: 35713.20, 35001.80
Support Zones: 34469.60, 3437.50
US 30 Long-Term Trend: Bullish
The market had been on a bullish swing trend, with prices consistently moving above the trend line since March. However, sellers are now aiming to penetrate down to the 34372.50 level. The buyers, on the other hand, are attempting to find bargains above this key level.
As the trading week progresses, sellers may continue the downward pressure towards the trend line. On the daily chart, the Relative Strength Index (RSI) remains crossed out, indicating the influence of sellers. Thus, the downward pressure is likely to persist for some time before sellers retreat.
US 30 Short-Term Trend: Bearish
Examining the 4-hour chart, we observe sellers eager to break below the 34372.50 area, while buyers are also attempting a comeback. However, the buyers require more attraction or strength to initiate a counter-move.
The downward pressure is expected to continue for a while as sellers dominate the market. Traders should monitor price movements closely and seek confirmation from additional indicators before making any trading decisions. Nevertheless, the general term depicts a bullish moment.
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