US100 breaks above two important points of resistance - the downward trendline and 13,333 pts level, which was acting as significant resistance around February and March. The second resistance currently being tested is the neckline of the double-bottom pattern. This formation is marked with the 61.8 Fibonacci retracement of the last upward wave. According to the assumptions of the technical analysis, the target for the bulls is located around 13,900 pts, although the key resistance zone lies at 13,600-13,700 pts.
It is worth noting that the double bottom pattern coincides with the neckline of the inverted head and shoulders formation, which appeared in February. The pattern has not been filled, but one can see that the neckline is still a significant price point. A return below 13333 pts could reduce the current bullish momentum, although one can see that the market sentiment is really positive.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Nasdaq breaks above a very important resistance. Source: xStation5
