- US 100 index holds within bullish area but lacks steam
- Bulls need a close above 20,325-20,500 to strengthen uptrend
The US 100 stock index is about to open mildly lower on Friday despite upbeat US banking earnings, weighed by Tesla’s disappointing guidance on its self-driving robotaxis.
The index stabilized around September’s high and near the constraining ascending line from September 2022 at 20,316 following its bounce off the 20-day exponential moving average (EMA). Technically, the price could enter a consolidation phase as the stochastic oscillator is looking for a negative pivot and the RSI is losing momentum, though with the latter holding comfortably above its 50 neutral mark, buying appetite could stay alive.
The price could gain fresh impetus towards the all-time high of 20,770 if a close above the 20,325-20,500 is achieved. Stretching into uncharted territory, the bulls may face some congestion around the 21,000 psychological mark and then near 21,500.
If downside pressures strengthen, the 20-day EMA could come back into view within the 19,885-20,000 region. A step below this floor may press the price towards the 50-day EMA, which overlaps with the 23.6% Fibonacci retracement of the latest upleg near 19,585. Another failure there could send stronger bearish signals, confirming additional declines towards the 100-day EMA and the 38.2% Fibonacci of 19, 137.
In summary, although the US 100 index hasn’t lost its shine yet, it could shift to the sidelines if the 20,325-20,500 resistance territory proves solid.
