UsaTec: Making all-time highs

The major US index closed the week on a high note, with sentiment reflecting caution as the Greek euphoria fades and traders focus on domestic economic data and their implication for monetary policy. The consumer price inflation data came in line with expectations and housing starts for June were light. Tech earnings could give some boost even as monetary policy concerns weigh down.

On the economic front, the US Labor Department reported that jobless claims fell to 281K in the week ended July 11^th from a downwardly revised 296K in the previous week. The four-week average still rose to 282,500 from 279,250. Continuing claims calculated with a week’s lag fell 112K to 2.215 million in the week ended July 4^th.

The UsaTec rose 10.41% since the beginning of the Year and is in a bullish phase since 13^th of July. The Index rallied during the course of last week, making new highs for the year and closed at the high of the week although on low volume. The stochastic is showing bullish momentum and is above the 50 mid line.

Expecting upward move to a Fibonacci extension at 4,849 on a break above previous week high at 4,653 (scenario 1) or wait for a bounce on the previous weekly resistance, now support at 4,555 (scenario 2).

UsaTec is a CFD written over Nasdaq 100 futures.

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