Technical Analysis – US 500 index unlocks 3,000 level, hits new record highs
Posted on July 11, 2019 at 8:41 am GMT
Christina Parthenidou, XM Investment Research Desk
The US 500 stock index finally topped slightly above the 3,000 level and at new record highs after being unable to pierce the mark last week. According to the RSI and the MACD, the market could attract some buying in the short-term before turning lower as the former has yet to enter overbought territory and the latter seems to be regaining positive momentum above its red signal line.
On the upside, the price could settle for the 3,100 number which is the 161.8% Fibonacci extension of the downleg from 2,959 to 2,728 if it manages to close decisively above 3,000.
Alternatively, a failure to hold above 3,000 could bring the previous high of 2,959 back into view. Moving lower, the bears could pause around the 2,909 support before heading towards 2,870 which coincides with the 61.8% Fibonacci of 2,870.
In the bigger picture, the outlook remains bullish, with the index trading well above the 50- and the 200-day simple moving averages (SMA) and the ascending line drawn from the 2,332 bottom.
Summing up, the US 500 stock index is currently facing a bullish bias both in the short- and the long-term timeframe.