News
US 30 index extends pullback from record high
More selling likely if the price closes below 43,880
The US 30 index (cash) has been gradually decelerating over the past week, falling from an all-time high area of 45,072 to a low of 43,872.
The index closed below the 20-day exponential moving average (EMA), which acted as strong support in November, exposing itself to fresh declines in the coming sessions. Previously, the bulls attempted to breach the 45,072 record high twice without success. Hence, if the nearby support trendline at 43,885 cracks, the bears will head for the 50-day EMA at 43,500 and the lower band of a bullish channel seen near 43,300. Then a step lower could cause a painful decline toward the 100-day EMA at 42,500.
In the event the bulls take control above the 20-day EMA, they may face a challenging battle within the 44,685-45,000 territory. If they win, they may print a new higher high around 45,425 or near 45,825.
All in all, the recent downfall in the US 30 index could gain more legs in the coming sessions, particularly if the 43,885 floor collapses.