Technical Analysis – US 100 index throws doubt on the latest bear attack
August 31, 2023 3:26 pm
The US 100 stock index (cash) will be closely watched throughout the day as the bulls re-examine the tentative short-term descending trendline drawn from July’s 1½-year high at 15,480.
A decisive step above that bar at 15,480 would call into question the downfall from recent highs, likely motivating an ascent towards the 15,800-15,930 ceiling. A victory at this point could produce another upleg to the 16,280 constraining zone, while higher, the focus will immediately fall on the resistance line that rejected the price three times since February 2023 at 16,680.
The technical picture is encouraging, as the RSI is marking a new higher above its 50 neutral mark. Meanwhile, the MACD has stepped into the positive area for the first time since March, embracing the latest bullish wave in the market too. On the other hand, the stochastic oscillator is about to complete its upward move as the indicator enters the overbought zone above 80, foreseeing narrow improvement ahead. Note that the price is also trading marginally below the upper Bollinger band, making a downside correction likely too.
Otherwise, a backward flip could revisit the August floor of 14,680-14,770, though only a drop below the 2023 tentative ascending trendline at 14,350 would flag a bearish trend reversal in the big picture. Even lower, the bears could stabilize within the 13,880-14,000 territory.
Overall, the US 100 index is facing an improving short-term bias, but the bulls will need to stay above the 15,480 barrier to gain fresh fuel.
The US 100 stock index (cash) will be closely watched throughout the day as the bulls re-examine the tentative short-term descending trendline drawn from July’s 1½-year high at 15,480.
A decisive step above that bar at 15,480 would call into question the downfall from recent highs, likely motivating an ascent towards the 15,800-15,930 ceiling. A victory at this point could produce another upleg to the 16,280 constraining zone, while higher, the focus will immediately fall on the resistance line that rejected the price three times since February 2023 at 16,680.
The technical picture is encouraging, as the RSI is marking a new higher above its 50 neutral mark. Meanwhile, the MACD has stepped into the positive area for the first time since March, embracing the latest bullish wave in the market too. On the other hand, the stochastic oscillator is about to complete its upward move as the indicator enters the overbought zone above 80, foreseeing narrow improvement ahead. Note that the price is also trading marginally below the upper Bollinger band, making a downside correction likely too.
Otherwise, a backward flip could revisit the August floor of 14,680-14,770, though only a drop below the 2023 tentative ascending trendline at 14,350 would flag a bearish trend reversal in the big picture. Even lower, the bears could stabilize within the 13,880-14,000 territory.
Overall, the US 100 index is facing an improving short-term bias, but the bulls will need to stay above the 15,480 barrier to gain fresh fuel.
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