• Contact Us
  • Homepages
Most Forex
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
Most Forex
No Result
View All Result
Home Technical Analysis

Nasdaq 100 May Pull Back, Eyeing 50-Day SMA for Support

Forex Tips by Forex Tips
October 25, 2020
in Technical Analysis
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


Nasdaq 100 index Technical Forecast: Neutral

  • The Nasdaq 100 index formed a bearish “AB=CD” pattern and has since entered consolidation
  • The index’s immediate support level can be found at 11,520 – the 50-Day SMA line
  • The medium term trend appears bullish-biased, yet a “Double Top” could derail the uptrend

The Nasdaq 100 index likely formed a bearish “AB=CD” pattern in September, and has since entered a period of consolidation. The index has retraced almost 5% from the peak of 12,250, hitting a key support level at the 50-Day Simple Moving Average (SMA) before bouncing back (chart below). If the 50-Day SMA fails to hold, the index may decline further to test the next support level at 11,465 – the 76.4% Fibonacci retracement.

An “AB=CD” pattern is a classic harmonic pattern and is the building block of the more sophisticated “Gartley 222” pattern. An “AB=CD” pattern is formed by almost parallel AB and CD legs, which are similar in time frame and length (highlighted in red). A bearish “AB=CD” pattern is formed by two ascending AB and CD legs, and is usually followed by a correction after point D.

The index has just slipped below the 20-Day SMA, which is also the middle line of the Bollinger Band. When price enters into the lower half of the Bollinger Band, this usually signals further downside potential as the medium-term momentum has likely turned bearish. The MACD indicator has also formed a “Death Cross” this week, signaling that downward pressure may be prevailing in the days to come.

Nasdaq 100 Index – Daily Chart

Nasdaq 100 Index Chart

Equities Forecast

Equities Forecast

Recommended by Margaret Yang, CFA

What is the road ahead for equities this quarter?

On the weekly basis, however, the Nasdaq 100 index appears to be taking a pause after registering a whopping 87% gain from March to August (chart below). The overall trend remains bullish-biased, with the recent consolidation potentially paving the way for higher highs. The 10-Week SMA line may serve as an immediate support, followed by the 20-Week SMA line.

In the medium term, a failure to break above September’s high of 12,260 may result in a “Double Top” pattern on the weekly chart, which could lead to a deeper pullback.

Nasdaq 100 Index – Weekly Chart

Nasdaq 100 Index

Building Confidence in Trading

Building Confidence in Trading

Recommended by Margaret Yang, CFA

Don’t give into despair, make a game plan

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter





Source link

Share76Tweet47

Related Posts

Our data shows traders are now at their least net-long Germany 30 since Jan 09 when Germany 30 traded near 14,102.20.

Our data shows traders are now at their least net-long Germany 30 since Jan 09 when Germany 30 traded near 14,102.20.

by Forex Tips
March 8, 2021
0

Number of traders net-short has increased by 55.93% from last week. SYMBOL TRADING BIAS NET-LONG% NET-SHORT% CHANGE IN LONGS...

US Dollar Fundamental Outlook: USD/SGD, USD/MYR, USD/IDR, USD/PHP

US Dollar Technical Forecast: EUR/USD, USD/JPY, USD/CAD

by Forex Tips
March 7, 2021
0

US Dollar Technical Forecast: Bullish The general consensus coming into this year was for a continued combination of equity...

Aussie March Lower- AUD/USD Eyes 2021 Low

by Forex Tips
March 7, 2021
0

Australian Dollar Technical Price Outlook: AUD/USD Weekly Trade LevelsAustralian Dollar technical trade level update - Weekly ChartAUD/USD reversal looks...

Retail Investors Buying the Dip?

Dow Jones, Nasdaq 100, S&P 500 Forecasts for the Week Ahead

by Forex Tips
March 6, 2021
0

Indices Technical Forecast: BearishS&P 500 below important March trend-lineDow Jones could be sub-30k soonNasdaq 100 leading the way lower,...

EUR/USD Pulls Back from July High as EU Splits COVID Recovery Fund

Weekly Technical Euro Forecast: Basically a Falling Knife

by Forex Tips
March 6, 2021
0

Technical Forecast for the Euro: BearishThe Euro has been cut down to size in recent days, and technical studies...

Load More

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos
Forex Pulse Detector

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.