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The following remark appeared in last week’s post on the daily bar chart pattern of SPX 500: “Expect bears to put up a fight to defend the 2954 level. But it might be a ‘fight for a cause long ago forgotten’.”
Bears did put up a good fight, as the index closed lower during the first three trading days of the week, touching a low of 2913 on Wed. Jun 26. However, bulls fought back. The index lost just 9 points on a weekly closing basis.
Daily technical indicators are in bullish zones, but only RSI is showing some upward momentum. MACD is above its rising signal line. RSI has moved up after a dip towards its 50% level. Slow stochastic has dropped sharply from its overbought zone.
All three EMAs are rising, and the index is trading above them in a bull market. It is just a matter of time before bulls overcome bear resistance at the 2954 level.
On longer term weekly chart (not shown), the index closed well above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones, but not showing much upward momentum.
FTSE 100 index chart pattern
The following remark appeared in last week’s post on the daily bar chart pattern of FTSE 100: “A convincing close above the previous (Apr 23) top of 7529 is required for bulls to regain control of the chart, and technically confirm completion of a bullish ‘cup and handle’ pattern…”
Technical confirmation of the ‘cup and handle’ pattern is still awaited, as the index consolidated sideways within a trading range during the week.
Daily technical indicators are in bullish zones but only Stochastic is showing upward momentum. MACD has dropped to seek support from its signal line. RSI is moving sideways above its 50% level. Stochastic has recovered after falling towards its 50% level.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory for the fourth straight week. Weekly technical indicators are looking bullish. MACD has crossed above its signal line in bullish zone. RSI and Stochastic are rising above their respective 50% levels. Some more upside is likely.
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