Technical Analysis – US 100 index safeguards 2023 upleg
August 1, 2023 1:26 pm
The US 100 stock index (cash) rotated higher around its 20-day simple moving average (SMA) at 15,450 last Friday and above June’s high of 15,280, retaining confidence in its 2023 uptrend.
Although the bearish doji at the top of the uptrend remains worrisome, the latest upturn keeps the focus on July’s 1½-year high of 15,896. The bulls could even attempt to mark a new higher high near the resistance line from February at 16,140 if the 20-day SMA at 15,460 holds firm. Running higher, the index could examine the 2021 ceiling of 16,585 – 15,767 before sailing into uncharted waters. The 17,000 psychological mark could initially attract traders’ attention in this case.
Meanwhile, the RSI and MACD indicators show no clear direction, which contrasts the bullish scenario mentioned earlier.
Nevertheless, sellers may not enter unless the price steps below its 20-day SMA at 15,460. A close below the nearby support of 15,695 could initiate such a drop. Even lower, the 50-day SMA could next buffer downside pressures around 15,040 ahead of the 14,785-14,670 constraining area. A continuation lower could develop at a faster pace towards the 14,215 barrier.
To sum up, the US 100 index sustains a positive outlook in the short- and medium-term picture as the uptrend shows no serious cracks yet. A break below 15,460 could trigger the next bearish action in the market.
The US 100 stock index (cash) rotated higher around its 20-day simple moving average (SMA) at 15,450 last Friday and above June’s high of 15,280, retaining confidence in its 2023 uptrend.
Although the bearish doji at the top of the uptrend remains worrisome, the latest upturn keeps the focus on July’s 1½-year high of 15,896. The bulls could even attempt to mark a new higher high near the resistance line from February at 16,140 if the 20-day SMA at 15,460 holds firm. Running higher, the index could examine the 2021 ceiling of 16,585 – 15,767 before sailing into uncharted waters. The 17,000 psychological mark could initially attract traders’ attention in this case.
Meanwhile, the RSI and MACD indicators show no clear direction, which contrasts the bullish scenario mentioned earlier.
Nevertheless, sellers may not enter unless the price steps below its 20-day SMA at 15,460. A close below the nearby support of 15,695 could initiate such a drop. Even lower, the 50-day SMA could next buffer downside pressures around 15,040 ahead of the 14,785-14,670 constraining area. A continuation lower could develop at a faster pace towards the 14,215 barrier.
To sum up, the US 100 index sustains a positive outlook in the short- and medium-term picture as the uptrend shows no serious cracks yet. A break below 15,460 could trigger the next bearish action in the market.
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