US100 index hovers above key level

The US100 index is trying to find a new balance following the recent market developments. It is currently trading above the 200-day simple moving average (SMA) and the 23.6% Fibonacci retracement level of the November 22, 2021 – October 13 downtrend. This is the second attempt from the bulls to resist the bearish pressure that is dominating market sentiment since the February 2 high of 12,894.

The bulls cannot rely on the Average Directional Movement Index (ADX) for support as this continues to signal a muted bearish trend. With the RSI hovering around its 50-midpoint, the burden once again falls on the stochastic oscillator. It is trying to drop back inside its oversold territory and potentially support another bearish move. Interestingly, a descending broadening wedge has been developing that could lend a helping hand to the bulls. This type of pattern tends to break upwards, but its performance improves significantly after a failed breakout on either side.

Should the bulls take the market reins, the first target would be at the 12,083-12,226 range set by multiple highs during 2020. Higher, the September 2, 2020 high of 12,465 could trouble the bulls before they potentially set their eyes on the 38.2% Fibonacci retracement of 12,852.

On the other hand, the first goal for the bears remains the 11,883 level set by the 200-day SMA. If successful in breaking this level, they could have a look at the 100-day SMAs at 11,692, before aiming for the January 19 low of 11,248.

To sum up, the US 100 cash index is trying to stay above the 11,883-11,974 area as the bearish pressure appears to remain well in place.

About the author

Stefanos Oikonomidis

Stefanos bergabung XM sebagai Analis Junior pada September 2021. Ia melakukan riset pasar harian pada mata uang, komoditas dan pasar ekuitas, dari perspektif fundamental dan teknis. Sebelum bergabung di XM, ia memperoleh wawasan berharga dengan bekerja sebagai Pekerja Magang Risiko Kredit di bank besar Yunani.

Stefanos meraih gelar Master di bidang Finansial dari Warwick Business School dan gelar Sarjana di bidang Akuntansi dan Finansial dari Athens University of Economics and Business. Ia percaya bahwa untuk menjadi sukses di industri, Anda harus bisa mengidentifikasi kekuatan pendorong di balik setiap pergerakan pasar, dan dibahas secara jelas dengan para pembaca.