Dow Jones 30 index (US 30) bulls still have control; flirts with a 6-month high.
The Dow Jones index is hovering slightly below the six-month high of 26,496, remaining well above the ‘golden cross’ between the 50- and 200-day simple moving averages (SMA). Today, though, the index is on the backfoot and the technical indicators suggest that the market could ease a little bit in the short-term. The RSI is flattening in the positive zone, while the MACD stands below its trigger line.
In case of a correction lower, preliminary support may be found near the 50-day SMA currently at 25,822 as well as around the 23.6% Fibonacci retracement level of the up leg from 21,596 to 26,496 around 25,337 and the 200-day SMA. Falling slightly below this area would turn the bias back to neutral, meeting the 25,220 support.
On the other hand, if the bulls continue to have the control, immediate resistance could come around the six-month high of 26,496, where it topped on April 5. If buyers pierce above that, the next obstacle may be the all-time high of 26,960.
In the short-term, the indicators point to a possible bearish retracement, however, the index is still creating higher highs and higher lows over the last couple of months, which augurs well for the medium-term.
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