Facts
- The US100 index halted its decline at the EMA200 level on the daily (D1) timeframe and is rebounding above 21,000 points today.
- After Friday’s in-line PCE inflation data from the U.S., Wall Street is slowly attempting to recover from recent losses.
- Geopolitical tensions related to Ukraine have not triggered sell-offs in Western stock markets.
- Fed’s Goolsbee indicated that U.S. inflation is still likely on track toward the 2% target.
Recommendation
Long position on US100 at market price
- Stop loss: 20,550
- Take profit: 21,400
Opinion
Recently, US100 tested a key long-term support level at EMA200 (around 20,500 points) and managed to rebound from this crucial area for the ongoing bull market. Technical improvement, which could lead to a test of recent price reactions and a potential reversal of the sell-off, may support further recovery.
A key focus will be today’s U.S. ISM Manufacturing PMI data for February, where the market would likely welcome a solid reading alongside a lower price component.
We recommend opening a long position on US100, targeting 21,400 points, with a stop-loss order at 20,550 (the local low from the last sell-off, whose retest could pave the way for another downward impulse).
US100 Chart (H1 Interval)
Source: xStation5
US100 Chart (D1 Interval)
Source: xStation5
