US 100 rebound gathers pace above 50-dayUS Tech 100 CFDFOREXCOM:NAS100FOREXcomUS 100 has rebounded sharply from the July lows, breaking the downtrend it had been trading in before reclaiming the important 50-day simple moving average. Following that breakout, the price retested the 50-day and bounced from support at 29,200, a level that formerly acted as resistance. The last three candles have also formed a morning star. Clearly, it has appeared after a relatively short downturn rather than a major bearish move, so I wouldn’t place too much weight on the pattern alone. But combined with the bounce from 29,200 and the reclaim of the 50-day moving average, it adds to the sense that the near-term path of least resistance may be higher. Ideally, longs would have been initiated closer to 29,200 or beneath the 50-day moving average, but that opportunity has passed for now. One potential setup would be to initiate longs around current levels with a tight stop beneath Friday’s closing level at 29,725, targeting a move back towards the record high at 30,756. Levels of note along the way include 29,950, the August 5 high, followed by 30,325, the June 30 high. Above there, the price has failed several times around 30,600, making that an obvious potential target for traders unwilling to wait for a full retest of the record high. The oscillators are also on board for the bulls. RSI (14) has moved back above the neutral 50 level and is beginning to register slightly higher highs, pointing to improving bullish momentum. MACD has staged a bullish crossover and flipped positive, reinforcing the message. For now, the price action looks like it wants to go higher. Good luck! DS