Two potential targets for WSt30m_index

<p><strong>By <a href="http://investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a> </strong></p>
<ul>
<li>WSt30_m index posted new 2023 intraday high on Wednesday</li>
<li>Markets cheered yesterday’s lower-than-expected US inflation data</li>
<li>JPMorgan and other big US banks to unofficially kick off US earnings season on Friday</li>
<li>WSt30_m bulls may next aim for <span lang="EN-US" xml:lang="EN-US"><strong>335374 </strong>and </span><span lang="EN-US" xml:lang="EN-US"><strong>36470</strong>, as long as risk-on sentiment holds</span></li>
</ul>
<p>&nbsp;</p>
<p><span lang="EN-US" xml:lang="EN-US">US stock markets cheered the US inflation data released yesterday (Wednesday, July 12th). </span><span lang="EN-US" xml:lang="EN-US">The consumer price indexes out of the world’s largest economy came in below market expectations. </span></p>
<p><span lang="EN-US" xml:lang="EN-US">Such data has raised hopes that the Fed will soon call time on its rate hikes that began over a year ago, and the thought of peak US rates being close at hand was a cause for rejoicing for risk assets.</span></p>
<blockquote>
<h3><em><span lang="EN-US" xml:lang="EN-US">The WSt30_m index, which tracks the benchmark Dow Jones Industrial average index, joined in Wednesday’s party by posting its highest intraday price so far this year.</span></em></h3>
</blockquote>
<p>&nbsp;</p>
<h4><strong><span lang="EN-US" xml:lang="EN-US">However, traders and investors will be bracing for another key event ahead.</span></strong></h4>
<p><span lang="EN-US" xml:lang="EN-US">Tomorrow (Friday, July 14th), the US earnings season will unofficially kick off with the latest quarterly financial results out of Wall Street banking titans, namely <strong>JPMorgan,</strong> Citigroup, and Wells Fargo.</span></p>
<blockquote><p><em><span lang="EN-US" xml:lang="EN-US">Note that <strong>JPMorgan</strong> alone comprises almost <strong>3%</strong> of the Dow Jones Industrial Average index (tracked by WSt30_m). </span></em></p></blockquote>
<p><span lang="EN-US" xml:lang="EN-US">And the Dow index contains two banking heavyweights in the form of JPMorgan and also Goldman Sachs, which combined account for 9.1% of the benchmark index which tracks 30 industry leaders within the US economy.</span></p>
<p><span lang="EN-US" xml:lang="EN-US">With all that in mind, the WSt30_m index is set to be heavily influenced by how markets react to the latest earnings results out of JPMorgan and its peers over the coming days.</span></p>
<p>&nbsp;</p>
<h4><strong><span lang="EN-US" xml:lang="EN-US">Looking at the price charts … </span></strong></h4>
<p><span lang="EN-US" xml:lang="EN-US">The WSt30_m index has been oscillating between a weekly support and resistance level since the beginning of June. </span></p>
<blockquote><p><em><span lang="EN-US" xml:lang="EN-US">The battle between the bulls and bears has not been decided yet, but the bulls seem poised for a retest of the weekly resistance level that happened on 12 July.  </span></em></p></blockquote>
<p><span lang="EN-US" xml:lang="EN-US">This possible scenario is confirmed by the fact that the price is above the 15 and 34 Simple Moving Average with the Momentum Oscillator adding its weight as well when it broke above the 100-base line into bullish terrain. </span></p>
<p><span lang="EN-US" xml:lang="EN-US">If the bulls can drive the price above the weekly resistance level and specifically a critical resistance that formed on 12 July at 34627, then two </span><span lang="EN-US" xml:lang="EN-US">possible targets become possible from there. </span></p>
<p>&nbsp;</p>
<h4><strong><span lang="EN-US" xml:lang="EN-US">Potential opportunities</span></strong></h4>
<p><span lang="EN-US" xml:lang="EN-US">Attaching the Fibonacci tool to the top 34627 and dragging it to a bottom that formed on 26 June at 33631, the following potential </span><span lang="EN-US" xml:lang="EN-US">targets can be established:</span></p>
<ul>
<li><span lang="EN-US" xml:lang="EN-US"><strong>Potential Target 1: 335374 </strong><br />
<em>(situated just before a weekly resistance level at 35569).</em></span></li>
<li><span lang="EN-US" xml:lang="EN-US"><strong>Potential Target 2: 36470</strong><br />
<em>(just before another weekly resistance level at 36667)</em></span></li>
</ul>
<p><img decoding="async" loading="lazy" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user16/WSt30%20-%20TK%20-%2013%20July%202023.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="042f0221-8441-48a3-a32a-08656fce584b" data-src="/s3-static/users/user16/WSt30%20-%20TK%20-%2013%20July%202023.png" /></p>
<blockquote>
<h4><em><span lang="EN-US" xml:lang="EN-US">If the support level at 33631 is broken, this scenario is no longer valid and must be reassessed. </span></em></h4>
</blockquote>
<p><span lang="EN-US" xml:lang="EN-US">As long as bulls can keep up the momentum with demand overcoming supply, the market outlook for the WSt30_m index on the Daily time frame should have bullish potential.</span></p>
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