The US100 (Nasdaq) hourly chart (H1) shows strong bullish momentum, with the index extending its upward move and breaking through the key resistance level at 23,851 points (Fibonacci 100%). It is now trading above 24,020 points — its highest level in recent weeks.
Technical Analysis:
- After a corrective wave at the end of July, the index found strong support near 22,800 points (Fibonacci 0.0%) and rebounded sharply, forming a series of higher highs and higher lows. This indicates a clear uptrend supported by an ascending trendline that can be traced back to early August.
- Fibonacci levels highlight the importance of support at 23,352 points (50%), which acted as the launchpad for the latest bullish move. The recent breakout above 23,851 points suggests the potential for further upside, with 24,500 points (Fibonacci 161.8%) as the next area of interest.
- The Relative Strength Index (RSI) is at 71, indicating potential overbought conditions, which could lead to short-term profit-taking — though not necessarily a trend reversal.
Conclusion:
As long as the index holds above 23,850 points, the bullish scenario remains intact. However, technical indicators warn of a possible short-term correction. Traders will closely watch price behavior in the 24,000–24,100 range to assess whether the uptrend will continue or face a pullback toward 23,630 or 23,350 points.
Source: Xstation
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