US stocks pierce channel's resistance

Source: Dukascopy Bank SA


The US top 2000 stock index has mostly continued to decline in a large scale channel down pattern throughout the second part of 2023. However, most recently a major event took place. The index pierced the resistance zone at 1,735.00/1,750.00, the upper trend line of the channel pattern and the 50-day simple moving average.

In theory, this event should be followed by a steep surge as far as 1,800.00. Although, on November 7, the stocks declined back below the resistance levels.

If the index resumes its 2023 decline, note the support of the 1,700.00 and 1,650.00 levels. The 1,700.00 acted as support in early 2023. However, the 1,650.00 mark kept the index up in 2022.

On the other hand, a proper recovery of the index would have to once again reach above all the mentioned resistance levels, before approaching 1,800.00.
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