Momentum indicators mostly point to a continuation of the current move
The US 100 cash index is in the green again today, recording its fifth consecutive positive session. It has been aggressively moving higher from September lows with the US 100 index now trading a tad below the key July 19, 2023 descending trendline. The bulls need a new higher high, above the September 1 peak of 15,628, in order to cancel out the developing series of lower lows and lower highs.
Interestingly, the bulls appear to have the strong support of the momentum indicators. The Average Directional Movement Index (ADX) is edging higher, above its 25-threshold, revealing a weak bullish trend. Similarly, the RSI has moved upwards, and it is currently trading comfortably above its 50-midpoint. More importantly, the stochastic oscillator is edging higher in a vertical fashion towards its overbought territory, building a good gap from its moving average.
Should the bulls still feel confident, they would try to overcome the busy 15,257-15,411 range that is defined by the March 30, 2022 high, the 78.6% Fibonacci retracement level of the November 22, 2021 – October 13, 2022 downtrend and the important July 19, 2023 trendline. They could then have the chance to record a new peak and gradually test the resistance set by the September 6, 2021 high at 15,708.
On the flip side, the bears are probably keen on protecting their hard-earned gains by defending the 15,257-15,411 range. If successful, they could meet strong support at the convergence of the 50- & 100-day simple moving averages (SMAs) at the 15,082 level. Even lower, the bears’ target seems to be the busier 14,346-14,382 area, which is populated by the October 4, 2021 low and the 61.8% Fibonacci retracement.
To sum up, the US 100 cash index bulls are riding the wave with the strong support of the momentum indicators, but their first true test – the July 19, 2023 trendline – is around the corner.
US 100 cash index continues its strong short-term upleg
Strong reaction higher amidst challenging market environment
Momentum indicators mostly point to a continuation of the current move
The US 100 cash index is in the green again today, recording its fifth consecutive positive session. It has been aggressively moving higher from September lows with the US 100 index now trading a tad below the key July 19, 2023 descending trendline. The bulls need a new higher high, above the September 1 peak of 15,628, in order to cancel out the developing series of lower lows and lower highs.
Interestingly, the bulls appear to have the strong support of the momentum indicators. The Average Directional Movement Index (ADX) is edging higher, above its 25-threshold, revealing a weak bullish trend. Similarly, the RSI has moved upwards, and it is currently trading comfortably above its 50-midpoint. More importantly, the stochastic oscillator is edging higher in a vertical fashion towards its overbought territory, building a good gap from its moving average.
Should the bulls still feel confident, they would try to overcome the busy 15,257-15,411 range that is defined by the March 30, 2022 high, the 78.6% Fibonacci retracement level of the November 22, 2021 – October 13, 2022 downtrend and the important July 19, 2023 trendline. They could then have the chance to record a new peak and gradually test the resistance set by the September 6, 2021 high at 15,708.
On the flip side, the bears are probably keen on protecting their hard-earned gains by defending the 15,257-15,411 range. If successful, they could meet strong support at the convergence of the 50- & 100-day simple moving averages (SMAs) at the 15,082 level. Even lower, the bears’ target seems to be the busier 14,346-14,382 area, which is populated by the October 4, 2021 low and the 61.8% Fibonacci retracement.
To sum up, the US 100 cash index bulls are riding the wave with the strong support of the momentum indicators, but their first true test – the July 19, 2023 trendline – is around the corner.
Related Posts: