Relevance up to 11:00 2021-10-18 UTC–4
The Nasdaq 100 technology index (#NDX) is trading higher, after having broken the 200 EMA. Now it faces the top of the downtrend channel formed in the 4-hour chart. This channel is projected from September 7 when the all-time high at 15,695 was recorded.
The upward movement of the Nasdaq-100 can be attributed to the good performance of stocks such as Paypal, NVIDIA, and Intel that on average have risen more than 2.7%. In general, the index reflects the optimism of the market.
The #NDX would be preparing for a sharp break above the bearish channel. Consolidation above the 200 EMA around the 15,000 psychological level is likely to accumulate more buyers.
According to the 4-hour chart, we can observe the formation of an inverted Head & Shoulders technical pattern. This pattern has been confirmed with the break of the neckline on October 13, so the outlook may be bullish in the short term. The quotes are likely to rise to the 6/8 Murray level at 15,625.
The main trend remains bearish. However, as long as it remains above the EMA 200 and 4/8 of Murray, located at 15,000, there is a probability of a new bullish scenario and it could go as high as 15,625. A break of 15,120 will confirm the bullish outlook.
The retracement zone for the Nasdaq is at the 200 EMA and the 21 SMA. It may lack the strength to break the top of the bearish channel, and could accumulate more buyers at 15,000 or 14,826. A technical bounce at these support levels will give us a good chance to buy.
The reading of the Eagle indicator is showing a sign of overbought conditions, as it is approaching the 90-95 level which represents an imminent correction. Therefore, it is likely that we should wait for a correction in the Nasdaq in the next few days and then it could resume its upward movement.
Support and Resistance Levels on October 15 – 18, 2021
Resistance (3) 15,354
Resistance (2) 15,265
Resistance (1) 15,164
Support (1) 14,965
Support (2) 14,864
Support (3) 14,721
A trading tip for NASDAQ-100 on October 15 – 18, 2021
Buy above 15,000 or if there is a rebound at 14,826 (SMA 21) with take profit at 15,312 and 15,625 (6/8), and stop loss below 14,920.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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