News & Analysis

Eightcap CFD technical insights: US30 focus pattern breakout continues to hold.

May 31, 2018 | CFD News

Abit has happened since we last looked at the US30 but technically good signs continue to remain on the charts. This week saw a sharp decline as Italy continued to see political and credit concerns that could have deeper ramifications on the EU. Markets plunged on Tuesday the US 30 dropped over 300 points. Last night saw a strong rally as concerns in Italy eased. U.S tariffs worries are another ongoing concern. News hitting today steel tariffs are being proposed for Canada and Mexico.

Looking past these issues price continues to show signs of support for now. Looking below at the daily and weekly US30 charts.

US30 daily – buyers broke out of the 5 point ending pattern. Price tested but failed to beat 25,040 resistance. Price declined with the main extension lower hitting on Tuesday. Buyers recovered at 24,375 forming the current higher low that lines up with a previous high, this is a bullish sign. While buyers can hold above that level we could see a new rally that could test 24,820. If buyers fail to hold the current low this could put pressure on the ending pattern break out!

US30 Weekly – key support that started the recovery stands at 23,558. The weekly has also broken out of its descending triangle pattern with a test of the breakout being so far rejected this week. There is a new uptrend forming but it has yet still to confirm. As noted on the daily chart a new leg lower puts pressure on the pattern breakout and could cast doubt over the new weekly forming uptrend.

Traders another potential curveball is tomorrow nights U.S employment data.
Average Hourly Earnings EXP 0.2%
Non-Farm Employment Change EXP 189K
Unemployment Rate EXP 3.9%

It’s going to be an interesting week of trade coming up.

Good Trading from Eightcap.

 

 

 

 

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