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USA100 - 06/06/2019

Micro Analysis

06 June, 2019

For General Information only. Not Intended to Provide Trading or Investment Advice. Your Capital is at Risk.

Technical Outlook: USA100 index has risen more than 3.00% in the last three sessions, managing to break above the mark of 7200.00, which in this report acts as the Pivot Point. USA100 index has found strong support with Fed Chair Jerome Powell who pointed earlier this week to what markets have been portending for a while and that is an interest rate cut in 2019. From a technical perspective, USA100 could continue to rise if it manages to stay above the mark of 7200.00 (Pivot Point) and it can target next the rate of 7473.50 (Resistance 1), last tested almost two weeks ago, to the upside. The Daily Relative Strength Index has recently bounced off its oversold threshold of 30.0 to re-approach its neutral level of 50.0. If the index soon breaks above the rate of 50.0 and ends up in bull territory, the USA100 could happen to further rise in value, as buyers will try to more confidently re- take control from sellers.

If, however, the USA100 index fails to stay above the mark of 7200.00 and recent upward recovery proves to be just a false dawn, prices could fall down to Support 1 of 6940.50, which was last tested in early June of 2019. The alternative scenario could be supported by exacerbated trade tensions between China and the US, and the US and Mexico recently.

Pivot Point:

7200.00

Resistance 3:

7881.16

Resistance 2:

7653.63

Resistance 1:

7473.50

Support 1:

6940.50

Support 2:

6675.85

Support 3:

6466.75


Graph: (USA100, Daily)

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