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200-Day SMA Offers Logical Downside Target
When it comes to trading, having a solid understanding of technical indicators is crucial. On the daily timeframe, we recently saw resistance at 105.04 and the 50-day SMA at 104.98. As we look ahead, the 200-day SMA stands out as a key downside support target around 104.39. Breaking below this level could lead to further downside towards 103.62 support.
On the monthly chart, the Relative Strength Index (RSI) has struggled to move above the 50.00 centreline, adding to the bearish sentiment. This, combined with the recent downtrend on the daily chart, suggests that dollar bears may continue to control the market for the time being.
Short-term action on the H1 chart is also showing signs of resistance and support levels to watch, with 104.84 and 105.04 as key resistance points. Keep an eye on the 200-day SMA as a potential turning point for the market.
This Week’s Direction?
As we look ahead to the coming week, it’s important to note the current market dynamics. Sellers are in control at the moment, with resistance at 105.04 and a downtrend in place. Price action on the H1 timeframe may continue to support this bearish sentiment, potentially pushing towards the Fibonacci cluster at 104.47.
However, if trendline resistance is broken, we could see a move towards H1 resistance at 104.80. Stay tuned to Extreme Investor Network for the latest updates and insights into the market direction for the week ahead.
Remember, when it comes to trading, knowledge is power. Let Extreme Investor Network be your guide to success in the stock market.