The weekly NAS100 has charted a series of higher troughs followed by higher peaks. This puts the index into an uptrend.
- Higher peak, HP validated higher trough, HT.
- This allowed the green tentative trendline to be drawn.
- Higher peak, HP1 validated higher trough, HT1.
- This allowed the orange tentative trendline to be drawn.
- The orange trendline has a steeper gradient than the green trendlines and denotes a strong acceleration in NAS100's momentum.
However, we do note that the weekly RSI is over 85 (green rectangle). A reading above 80 is regarded as an overbought market. This suggests that the NAS100's current swing is near its apex. I.e., a correction is likely to ensue as the RSI normalises. This most likely sets up the next higher trough in the series (HT?). We continue to monitor.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.