The US100 has been on an upward trajectory since the start of 2023, peaking at new all-time highs in December before a temporary pullback in early January 2024. However, as evidenced by the weekly chart, the current uptrend appears to remain intact. The 16700-point zone should be viewed as a temporary support level. According to technical analysis, as long as prices remain above this level, continued growth is anticipated.
On the other hand, the nearest resistance level looms close at 17,250 points, coinciding with the external 161.8% Fibonacci retracement level derived from the previous downward correction that spanned from July to October 2023. A breakout above this 17250-point barrier could ignite another wave of upward momentum. Conversely, the emergence of sellers at this level might provide an opportunity for profit-taking from the recent robust gains.
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US100, W1 interval. Source: xStation5
Shifting our focus to the lower time frame – H1 – the upward movement stalled at the resistance level of 17055 points. For the time being, there are no indications signaling a trend reversal. The closest support level lies around 16900 points, where the 100-period moving average resides. A recent reaction to this average triggered a surge of over 200 points higher, validating its relevance in the short term. Even if the average is breached, it should not dissuade the prevailing bullish sentiment. It appears that only a price breakdown below the 16800-point support level could open the door for more substantial profit-taking and potential declines towards the January 5 lows of 16380 points.
US100, H1 interval. Source: xStation5
