The NASDAQ 100 index continues to move within the rising titled channel over the past nine months, stretching its upward pattern to a fresh record high. Looking at the very short-term, the price rebounded on the 6885 support in the previous week, climbing above the 200-day simple moving average (SMA). According to the MACD, the positive momentum could push for further gains in the short-term as the indicator picks up steam below the zero line. The stochastic oscillator is also advancing, though, it is relatively close to the overbought threshold.
In the positive scenario, the immediate resistance for bulls to have in mind is the 7,390 resistance level, before being able to challenge the 50-day SMA near 7459. If the market manages to overcome that area, the next resistance is coming from the 7,700 round level before steeper bullish actions take the price up to the upper bound of the channel, currently near 7,800.
A significant reversal to the downside could stall at the 200-day SMA near 7,700 at the time of writing. Further lower, the 6760 could also provide support if the index was able to fall below the upward sloping channel and bring more sell-off in the market.
In the medium-term picture, the index continues to hold in a bullish channel, underlining the positive outlook. However, a drop below the lower channel line could shift the sentiment into a bearish one.
All trading involves risk. It is possible to lose all your capital
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.