Nasdaq 100 index (US 100) may challenge 200-SMA roof; bullish in the near term.

The NASDAQ 100 index (US 100) has been in a positive tendency after the jump above the 61.8% Fibonacci retracement level of the down leg from the all-time high of 7700 to the 14-month low of 5845, around 6995. Currently, the price remains below the 200-day simple moving average (SMA), which is acting as a strong resistance level for the bulls.

Momentum indicators in the daily chart, though, are currently supporting that positive momentum is likely to strengthen in the short-term. Specifically, the RSI is holding above 50 and the MACD continues to distance itself above its red signal line.

Should the price decisively close above the roof of 200-SMA, traders could extend the bullish movement towards the 7130 resistance barrier. Further advances above this level, could then target the area around the 7350 level.

On the other side, a decline could meet the 6818 – 6775 support area, near the 50.0% Fibonacci region, before moving even lower towards the next significant obstacle of 6635, which stands around the 50-day SMA.

The recent bullish action turned the very short-term picture more positive, however, in the bigger view, the index entered neutral mode.


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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.

Source: XM

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