US indices have been moving in an upward trend for some time. Declines caused by the coronavirus panic have been completely erased on Nasdaq and S&P 500 indices while Dow Jones still trades below year-to-date and all-time highs. This week we take a look at a technical situation on major US indices.
US100
Let’s start with Nasdaq (US100) . Looking at the daily time frame, one can see that the index has been trading in an upward trend.The panic sell-off caused by the virus was erased and the US100 painted a fresh all time high. The index is now trading at the highest level in history. According to the Overbalance methodology, the sentiment remains upward as long as the price sits above the lower limit of 1:1 structure, which is also marked by previous price reactions. The 161.8% exterior retracement of coronavirus sell-off should act as the nearest resistance.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
US100 D1 interval. Source: xStation
US500
The upward trend is also being continued by theS&P 500 index (US500).The highest level in history has been reached last night. The upward rally has slowed down, but no bearish signal can be spotted on the chart yet. If buyers manage to break above the area at 3,995 pts and stay there, an upward move towards 3,725 pts may be on the cards. On the other hand, should we see a pullback, the lower limit of the upward channel will be the first target for sellers.
US500 D1 interval. Source: xStation
US30
Dow Jones (US30) is also trading in the upward trend but this index is clearly lagging behind US500 and US100. Looking at the daily time frame, one can see that the upward move has reached a resistance area marked with previous price reactions at 28,200 pts. If buyers do not manage to break above it, the downward correction may start. The nearest support for buyers lies at the upward trendline.. On the other hand, if bulls manage to clear the resistance at 28,800 pts, the way towards all time high at 29,430 pts will be left open.
US30 D1 interval. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
