US30 at key resistance – short-term analysis for 23 May 2022
The chart on the left shows FXCM's Dow Jones Industrial Average CFD, the US30. The index is trading in its weak zone, between the lower blue and red bands. The index's hourly chart, on the right, shows a bounce to the R1 pivot. This level is near the 50% retracement of the last down leg. These confluences often present as crucial resistance levels, which price reacts off. Finally, we note that the stochastic has already crossed bearishly (red ellipse). Given the daily chart's position, if the EMAs follow suit (black ellipse), it will be a bearish development. Then, if the hourly stochastic declines to 20 or less (blue arrow), momentum will be biased to the downside and pressure exerted on the US30.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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