👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

NASDAQ 100 Testing Trend Line

Published 03/01/2022, 10:19 AM
Updated 03/11/2024, 07:10 AM
NDX
-

The NASDAQ 100 has reached a key resistance zone here after a sharp recovery over the last few days:NASDAQ 100 Daily Chart


As you can see, the tech-heavy index is testing a bearish trend line around the 14200-14300 area. Here, we also have the 21-day exponential moving average coming into play.

What the bears would like to see here is a reversal, ideally a sharp one at that, to take us below Monday’s low. I would then expect a continuation to a new 2022 low thereafter if that happens.

As far as the bulls are concerned, they still need to see some further bullish price action to boost their confidence amid the ongoing situation with Russia/Ukraine. A closing break above this trend line would be a welcome sign.

All told, I am leaning more towards the bearish argument than bullish here and, as such, would be looking for bearish patterns to emerge to sell into this recovery.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.