Technical Analysis – US 100 index stops at uptrend line; positive risks not faded yet
US 100 heads up, standing beneath short-term rising trend line
Stochastics point north above oversold region
RSI ticks higher below 50 level
Technically, the stochastic oscillator is moving up following the bullish crossover within its %K and %D lines in the oversold zone, while the RSI is ticking slightly up beneath the neutral threshold of 50. Also, the 20- and 50-day simple moving averages (SMAs) are heading down, approaching the current market price.
If traders continue to buy the index, then the 50-day SMA near 19,470 resistance would be the first obstacle to look for ahead of the 20-day SMA at 19,875. A break above this level would shift the short-term outlook back to positive, taking the price above the near-term uptrend line at 20,120.
In the event of a downside reversal and a closing session below the long-term ascending trend line, near the 18,715 support, could open the way for a downside tendency, hitting 18,190. A strong barrier, though, could be found at the 200-day SMA at 17,690.
In the bigger picture, the US 100 index is bullish as long as it holds above the 200-day SMA. If it violates this line, the bears would probably take the upper hand.Latest News
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