Market Update: US30 setting up a new floor?
Hi traders, today we’re looking at the US30 as seller momentum looks to have found a checking point at previous support.
Chinese property developer woes continue to hang over equity markets but for now, it looks like the situation isn’t having any ongoing effects on indexes at this stage in the session. Fantasia Holdings (the latest to appear) on the debt horizon did not repay a bond that matured on Monday, it said in a filing to the Hong Kong exchange on Monday night.
Monday’s selling came down to pressure from tech stocks retreating after Facebook saw a double sting after its platforms crashed for 6 hours and the brand was hit by a whistleblower Frances Haugen appearing on 60 minutes.
Despite the rocky start to the week the US30 continues to hold firm above 33870 support. This level has been holding firm so far since June this year. What’s attracted us to this level is not just the holds but the way in which price has been defended recently. If you look at the 20th of September and 30th you can see two solid bear bars that hit the level and were stopped. On the 1st we saw a move through that was turned into a solid bull bar. Yesterday and today sellers have been stopped again.
Since the 20th we have seen more than support we are seen demand appearing, and for now, it looks firm. The key in this idea is obviously the support and demand areas discussed. While they remain in play we will look for buyers to continue pushing at new moves higher. A break of these levels by sellers and we will be looking for the medium-term downtrend to resume.
Will we buyers continue to hold the line?