• US 100 index turns up, but it’s not out of the woods yet  

• Bulls need approval near 19,840 to renew record rally

The US 100 stock index started Thursday’s session on the right foot, extending its recent upturn to 19,848 after a short break on Wednesday.

A close above Wednesday’s bar of 19,814 could pave the way for the 20,084-20,200 region, bounded by the ascending lines drawn from the beginning of the year. A steeper increase might take a breather near April’s resistance line at 20,500. If the bulls breach that wall too, the next stop could be around the 261.8% Fibonacci extension of the March-April downfall at 20,890.

Given the rebound in the stochastic oscillator and the positive slope in the RSI, the short-term risk is still skewed to the upside, though with the latter approaching its 70 overbought mark, the bulls might soon run out of fuel again.

Should the 19,814 resistance stand firm, the price could seek support near its 20-day exponential moving average (EMA) at 19,412 and the support trendline from May. A close below that floor could trigger a new downfall towards the 50-day EMA at 18,885, while lower, the index could head for the 18,465 zone.