Market Update: Can the US30 break resistance and retest records?

October 20, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, today we’re looking at the US30 as buyers have once again returned to a level that has been firm resistance.

Looking at the chart below, we can see the form move by buyers that broke the range deadlock. After moving out of the downtrend price spent some time treading water before buyers found enough demand to snap out of the consolidation. The HL set the new trend and buyers confirmed the move with a break above 39,450.

Currently, things are getting interesting as we see price has now returned to 35,480. This level has stood as resistance since August and it’s going to be the first upward true test it’s seen to date. Prior to today’s return, it acted as a range top before price started its last key decline. We see this level as a bit of a gatekeeper in a way as if buyers can break through it, the next logical stop is back up at the records.

Will we see buyers push through this resistance today, or will we see sellers continue to hold the line?

US30 D1 Chart

All times are AEDT.