Technical Analysis – US 100 cash index could see another bullish move
October 3, 2023 8:28 am
The US 100 cash index is edging lower today after four green candles
The bearish series of lower lows and lower highs remain intact
The momentum indicators point to a continuation of the current upleg
The US 100 cash index is in the red today as the short-term bearish trend since the July 19, 2023 peak remains firmly in place. The bulls are trying to stage an upleg but they need a new higher high, above the latest 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 support of the momentum indicators. The Average Directional Movement Index (ADX) is edging lower, towards its 25-threshold, revealing a weakening bearish trend. Similarly, the RSI has moved upwards, and it is currently trading a tad below its 50-midpoint. More importantly, the stochastic oscillator has just broken above its oversold territory, and it now appears to be heading higher and building a good gap from its moving average.
Should the bears ignore the developing signs from the momentum indicators, they would try to overcome the busier 14,346-14,382 area, which is populated by the October 4, 2021 low and the 61.8% Fibonacci retracement level of the November 22, 2021 – October 13, 2022 downtrend. If successful in breaking below this region, the next support area is expected at the April 29, 2021 high at 14,075.
On the flip side, the bulls are keen on continuing the current upleg. They would try to keep the US 100 cash index above the 100-day simple moving average (SMA) at 14,996. They could then set their eyes on the busier 15,161-15,411 range that is defined by the March 30, 2022 high, the 50-day SMA and the 78.6% Fibonacci retracement. Even higher, the key September 6, 2021 high at 15,708 will probably test the bulls’ determination.
To sum up, the US 100 cash index bulls have taken a breather and now look determined, with the support of the momentum indicators, to continue the current rally.
The US 100 cash index is edging lower today after four green candles
The bearish series of lower lows and lower highs remain intact
The momentum indicators point to a continuation of the current upleg
The US 100 cash index is in the red today as the short-term bearish trend since the July 19, 2023 peak remains firmly in place. The bulls are trying to stage an upleg but they need a new higher high, above the latest 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 support of the momentum indicators. The Average Directional Movement Index (ADX) is edging lower, towards its 25-threshold, revealing a weakening bearish trend. Similarly, the RSI has moved upwards, and it is currently trading a tad below its 50-midpoint. More importantly, the stochastic oscillator has just broken above its oversold territory, and it now appears to be heading higher and building a good gap from its moving average.
Should the bears ignore the developing signs from the momentum indicators, they would try to overcome the busier 14,346-14,382 area, which is populated by the October 4, 2021 low and the 61.8% Fibonacci retracement level of the November 22, 2021 – October 13, 2022 downtrend. If successful in breaking below this region, the next support area is expected at the April 29, 2021 high at 14,075.
On the flip side, the bulls are keen on continuing the current upleg. They would try to keep the US 100 cash index above the 100-day simple moving average (SMA) at 14,996. They could then set their eyes on the busier 15,161-15,411 range that is defined by the March 30, 2022 high, the 50-day SMA and the 78.6% Fibonacci retracement. Even higher, the key September 6, 2021 high at 15,708 will probably test the bulls’ determination.
To sum up, the US 100 cash index bulls have taken a breather and now look determined, with the support of the momentum indicators, to continue the current rally.
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