The Nasdaq 100 index (US 100) has been in a flying mode since yesterday, recording again a fresh all-time high around 8974.27 after it hit the 8660 support, which overlaps with the short-term 20-day simple moving average (SMA).

According to the RSI, the market could maintain positive momentum in the short-term as the indicator is positively sloped above its 70 level, though the fast Stochastics suggest that the market is located in overbought territory and therefore some weakness is possible; the blue %K line is fluctuating around the red %D line in overbought zone above 80.

In the positive scenario, where the price continues to expand above today’s high, a new top could probably be formed around the 261.8% Fibonacci extension level of the downward wave from 8035 to 7220 around 9350.

A reversal to the downside could stall at the 8660 support before challenging the crucial area within the 40- and 50-SMAs of 8515 – 8455, which encapsulates the 23.6% Fibonacci retracement level of the up-leg from 6930 to 8974.27. Even lower, the 38.2% Fibo of 8200 could come into play.

The outlook continues to look predominantly bullish, with trading activity taking place near record highs.


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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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