US30 Faces Downward Pressure and a Potential Break Below 37155.30 Key Level

Azeez Mustapha

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Market Analysis – January 16th

US30 faces downward pressure and a potential break below the 37155.30 key level. The US30 index has experienced a significant decline and could potentially proceed lower, breaking below the significant zone of 37155.30.

The stock market has opened in the red this week, indicating heightened volatility and a higher likelihood of further price drops. Currently, there is an attempt by sell traders to push the price lower, capitalizing on the rejection that sellers have been facing for weeks.

US30 Key Levels

Resistance Levels: 37856.80, 37155.30
Support Levels: 33845.00, 32420.40

US30 Faces Downward Pressure and a Potential Break Below 37155.30 Key Level

US30 Long-Term Trend: Bullish

The market has been in a consolidation phase for several weeks, particularly since last year. Since mid-December, the index price has struggled to regain its strength. In November, the bulls made a strong push, with a significant flow of buying activity from the 32420.40 level.

This resulted in a large volatility breakout, surpassing several key levels. However, the bulls were unable to breach the significant zone of 38000.00, leading to a period of consolidation.

US30 Faces Downward Pressure and a Potential Break Below 37155.30 Key Level

US30 Short-Term Trend: Bearish 

Currently, the sellers are exhibiting a strong reaction and appear ready to push the price lower than expected. A breakthrough of the 37155.30 level, followed by a retest, would likely confirm the continuation of the sell trend.

The Stochastic Oscillator, a momentum indicator, shows the current momentum favoring sellers in the market. As the price continues to tumble, it becomes increasingly likely that the selling trend will be confirmed.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

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