Top Story

Featured Trade: Nasdaq 100 bullish breakout from range

Short-term technical outlook on Nasdaq 100/US Tech 100 (Tues 18 Jun)



click to enlarge charts

Key technical elements

  • Since our previous “Featured Trade” report published on the US Tech 100 Index (proxy for the Nasdaq 100 futures) on last Tues, 12 Jun, the Index has staged the expected minor corrective pull-back/decline to print a low of 7417 on 13 June but fell short of our target/support of 7350. Click here for a recap.
  • Momentum from short to medium-term has turned positive as indicated by both the daily and hourly RSI oscillators.
  • In today’s European session, the Index has shaped a breakout from its minor “bullish pennant” contracting range configuration which has been reinforced by a dovish speech from ECB President Draghi in an ECB forum in Portugal. Draghi has emphasised that ECB has the available tools and the willingness to cut interest rates again or provide another round of QE if inflation does not reach ECB’s intended target.
  • Thus, it is likely that the Index has ended the minor corrective pull-back and it is shaping another potential impulsive upleg sequence within its medium-term uptrend in place since 03 Jun 2019 low of 6936.

Key Levels (1 to 3 days)

Intermediate support: 7250

Pivot (key support): 7417

Resistances: 7700 & 7825 (Fibonacci expansion)

Next support: 7250/7200

Conclusion

If the 7250 key short-term medium-term pivotal support holds, the Index is likely to shape another potential upleg to target the next resistances at 7700 (30 Aug/01 Oct 2018 swing highs) and 7825 next in the first step.

On the other hand, a break with an hourly close below 7417 invalidates the bullish  scenario for an extension of the minor corrective pull-back towards the key medium-term pivotal support zone of 7250/7200 (also the 50%/61.8% Fibonacci retracement of the recent rally from 03 Jun 2019 low to 11 Jun 2019 high).




Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT