We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The ongoing contraction in US production may keep #oilprices afloat in June as crude output falls to its lowest level since October 2018. Get your crude #oil market update from @DavidJSong https://t.co/jj1bMLX0DF https://t.co/O9NOqbfHkb
  • watching the #SpaceX launch🍿
  • Major investment bank models have touted USD selling, given the outperformance in US equities relative to its counterparts over the past month. How is this likely to impact the month-end rebalancing? Find out from @JMcQueenFX here:https://t.co/MtNrHmXZpD https://t.co/d00z4019XE
  • The medium-term #gold outlook still seems favorable as the #Fed, #ECB and more keep rates around 0. Immediate event risk ahead includes the #RBA and #BoC interest rate decisions, US jobs data and Brexit. Get your gold market update from @ddubrovskyFX here: https://t.co/ABXy78LmUn https://t.co/rCALcGaKOL
  • The trio of central banks overseeing the commodity currencies have already cut their main rates to all-time lows. Get your market update from @CVecchioFX here: https://t.co/OSUXrN5P3j https://t.co/Cxt86jl28N
  • The Japanese Yen fell for a third consecutive week with price testing resistance into June open. Here are the levels that matter on the $USDJPY weekly technical chart. Get your #currencies market update from @MBForex here: https://t.co/1QPXP0g7Ew https://t.co/WUtXHoRoQX
  • $USDZAR: A rally from here could be an important tell as to whether the level seen as support previously (17.76) will turn into a point of resistance for sellers to lean against. Get your $USDZAR technical analysis from @PaulRobinsonFX here:https://t.co/TNsQ4JJu6E https://t.co/I4yCjs2ja0
  • The US dollar continued to sell-off this week and the greenback’s future will be decided by commentary from the White House and not the Federal Reserve over the coming days and weeks. Get your #currencies market update from @nickcawley1 here: https://t.co/lpHneO3s2h https://t.co/bZ5klohLNd
  • #Gold prices have continued to push higher as expectations have built for global Central Banks to remain very loose and passive with monetary policy for the foreseeable future. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/h5tF3kAZfd https://t.co/VAYy9FGHcQ
  • Major investment bank models have touted USD selling, given the outperformance in US equities relative to its counterparts over the past month. How is this likely to impact the month-end rebalancing? Find out from @JMcQueenFX here:https://t.co/MtNrHmXZpD https://t.co/YvoHlUsdVr
Nasdaq 100 Price Outlook: Levels to Watch Ahead of Big-Tech Earnings

Nasdaq 100 Price Outlook: Levels to Watch Ahead of Big-Tech Earnings

2020-04-27 18:45:00
Peter Hanks, Analyst
Share:

Nasdaq 100 Forecast:

Nasdaq 100 Price Outlook: Levels to Watch Ahead of Big-Tech Earnings

The Nasdaq 100 has been the best performing index of the three major US baskets and it has reclaimed much of what it had lost in the coronavirus crash as a result. Now, however, the tech-heavy index will have to weather a string of earnings from its most influential components. For only the third time ever, according to Bloomberg, the five largest stocks of the S&P 500 will report their quarterly findings in the same week.

Apple, Amazon, Microsoft, Google and Facebook Lead Stock Rebound

nasdaq 100 price chart and S&P 500

Chart created in TradingView

These five stocks, Facebook, Microsoft, Apple, Amazon and Google, are also the five largest stocks on the Nasdaq 100 and have been a major area of strength for the broader US indices. In total, the five stocks account for roughly 45% of the Nasdaq 100 and each of them – like all other stocks at the moment – has a highly uncertain future. Therefore, earnings season will provide investors valuable insight with which they can use to conclude whether the degree of outperformance witnessed in recent weeks was warranted or entirely unfounded.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Peter Hanks
Traits of Successful Traders
Get My Guide

As we saw with Netflix last week, stellar results can still fall short of market expectations. Since the economy and stock market are in such an unusual environment, market participants have rightfully displayed apprehension around diving back into equity exposure, barring the tech stocks highlighted. Thus, even if the corporations can deliver a relatively strong showing, market expectations may have dealt the companies a losing hand regardless.

With the Nasdaq teetering on the lower bound of an ascending channel and lofty earnings expectations on the fundamental side, it seems risk is tilted to the downside at this stage. That being said, the Nasdaq 100 may look for support beneath around the 8,565 area where a Fibonacci level intercepts a rising band of support. Together, the technical markers will look to keep the index afloat, while a bearish break beneath could see the Nasdaq probe subsequent support around 8,200 and eventually 8,000.

Nasdaq 100 Price Chart: 4 - Hour Time Frame (February 2020 – April 2020)

nasdaq 100 price chart

On the other hand, a string of strong earnings reports from the largest tech stocks could add the fuel needed to allow the index to surmount nearby resistance at roughly 9,000. The zone stalled a previous attempt higher earlier this month and marks the Nasdaq’s highest level since late February. A move above this point would likely allow for further gains to be established.

Starts in:
Live now:
Jun 03
( 15:06 GMT )
Recommended by Peter Hanks
Weekly Stock Market Outlook
Register for webinar
Join now
Webinar has ended

In the meantime, follow @PeterHanksFX on Twitter for updates and analysis as traders prepare for the release of high-profile earnings, which kicks off Tuesday afternoon with Google and is followed by Microsoft and Facebook on Wednesday and Apple and Amazon on Thursday.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.