Technical Analysis – US 100 index makes new higher highs
July 19, 2023 11:28 am
The US 100 stock index (cash) revived its 2023 bullish outlook after a constructive week, marking a new higher high at 15,986 on Tuesday.
The uptrend shows no signs of abating despite warnings of an overbought market from the RSI and the Stochastic oscillator. The upward-sloping moving averages (SMAs) are endorsing the positive trajectory in the market as the price is aiming for the 16,000 psychological number. Yet, some caution might develop in the coming sessions as the index is facing limitations near the tentative resistance line at 15,850, which connects the highs from February.
If the bulls claim the 16,000 round level, the index could revisit the steep short-term ascending line at 16,585. The 2021 record high of 16,767 and the 17,000 mark could next come into view. Further up, the ascent could stall near the long-term ascending line at 17,365, which joins the lows from March 2020 and March 2022.
Should buying appetite fade, leaving the index below 15,865, the spotlight will immediately fall on the 15,695 handle. A step lower from there might seek support near the 20-day SMA at 15,215. If the bears dominate, the decline could continue towards the 50-day SMA at 14,670, where two constraining lines intersect each other at the moment. Breaking this floor too, selling forces could strengthen exponentially to 14,215.
All in all, the US 100 index could maintain a bullish mood in the short term, but traders will need a confirmation above 15,865-16,000 to lift the market higher.
The US 100 stock index (cash) revived its 2023 bullish outlook after a constructive week, marking a new higher high at 15,986 on Tuesday.
The uptrend shows no signs of abating despite warnings of an overbought market from the RSI and the Stochastic oscillator. The upward-sloping moving averages (SMAs) are endorsing the positive trajectory in the market as the price is aiming for the 16,000 psychological number. Yet, some caution might develop in the coming sessions as the index is facing limitations near the tentative resistance line at 15,850, which connects the highs from February.
If the bulls claim the 16,000 round level, the index could revisit the steep short-term ascending line at 16,585. The 2021 record high of 16,767 and the 17,000 mark could next come into view. Further up, the ascent could stall near the long-term ascending line at 17,365, which joins the lows from March 2020 and March 2022.
Should buying appetite fade, leaving the index below 15,865, the spotlight will immediately fall on the 15,695 handle. A step lower from there might seek support near the 20-day SMA at 15,215. If the bears dominate, the decline could continue towards the 50-day SMA at 14,670, where two constraining lines intersect each other at the moment. Breaking this floor too, selling forces could strengthen exponentially to 14,215.
All in all, the US 100 index could maintain a bullish mood in the short term, but traders will need a confirmation above 15,865-16,000 to lift the market higher.
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