The US 100 index has been completing new record highs over the last three consecutive days, edging towards the 12,465.02 number. According to the stochastics, positive momentum could push for further gains in the short-term as the indicator picks up steam above the 80 level. The RSI is also advancing, close to the 70 overbought threshold.
In the positive scenario, where the price continues to expand above today’s high the next resistance is coming from the 261% Fibonacci extension level of the down leg from 9,758 to 6,635 at 14,745.93 after it surpasses the psychological numbers such as 13,000 and 14,000.
A reversal to the downside could stall at the 20-day simple moving average (SMA) currently at 11,575 before touching the 23.6% Fibonacci retracement level of the upward move from 6,635 to 12,465.02 at 11,080, which stands near the 40-period SMA. Further below, the 38.2% Fibo of 10,230 could also provide support ahead of the 9,758 level.
Regarding the medium-term picture, the bullish outlook has built up as the index continues to record all-time highs; a dive below the 200-day SMA could shift the sentiment into a neutral one.
To sum up, the short-term bias is bullish though the index could be close to overbought levels, with the medium-term outlook also being positive.
