News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
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
USD/JPY
Bearish
More View more
Real Time News
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.15% 🇯🇵JPY: 0.04% 🇪🇺EUR: -0.08% 🇨🇦CAD: -0.09% 🇬🇧GBP: -0.15% 🇦🇺AUD: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tTYWvu60SE
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.25% US 500: -0.35% Wall Street: -0.36% France 40: -0.40% Germany 30: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/cyYqs9hGYZ
  • 🇫🇷 Business Confidence (OCT) Actual: 93 Expected: 96 Previous: 96 https://www.dailyfx.com/economic-calendar#2020-10-22
  • Heads Up:🇫🇷 Business Confidence (OCT) due at 06:45 GMT (15min) Expected: 96 Previous: 96 https://www.dailyfx.com/economic-calendar#2020-10-22
  • 🇩🇪 GfK Consumer Confidence (NOV) Actual: -3.1 Expected: -2.8 Previous: -1.7 https://www.dailyfx.com/economic-calendar#2020-10-22
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out:https://t.co/y3cckNW22W https://t.co/DWXPd1Fa8E
  • 🇳🇴 Unemployment Rate (AUG) Actual: 5.3% Expected: 5.1% Previous: 5.2% https://www.dailyfx.com/economic-calendar#2020-10-22
  • 🇩🇪 GfK Consumer Confidence (NOV) Actual: -3.1 Expected: -2.8 Previous: -1.6 https://www.dailyfx.com/economic-calendar#2020-10-22
  • Heads Up:🇳🇴 Unemployment Rate (AUG) due at 06:00 GMT (15min) Expected: 5.1% Previous: 5.2% https://www.dailyfx.com/economic-calendar#2020-10-22
  • Heads Up:🇩🇪 GfK Consumer Confidence (NOV) due at 06:00 GMT (15min) Expected: -2.8 Previous: -1.6 https://www.dailyfx.com/economic-calendar#2020-10-22
Nasdaq 100 Forecast: Tech Stock Rally Stops to Catch its Breath, What Next?

Nasdaq 100 Forecast: Tech Stock Rally Stops to Catch its Breath, What Next?

2020-10-14 17:00:00
Peter Hanks, Analyst
Share:

Nasdaq 100 Price Outlook:

Nasdaq 100 Forecast: Tech Stock Rally Stops to Catch its Breath, What Next?

Resistance looked to keep the Nasdaq 100 in check last week as a technical barrier around the 11,570 mark loomed over the tech-heavy index. Evidently, the bullish break on Friday opened the door for a continuation higher and as the leader of speculative risk appetite, the Nasdaq accepted the challenge with glee. Subsequent gains were quick to follow as the Nasdaq charged more than 700 points - nearly 6% - higher in just two sessions.

Advertisement

Interestingly, the surge higher in tech stocks lacks an obvious catalyst. Traders, investors and analysts have attributed the climb to stimulus hopes, a “blue sweep” in November and optimism ahead of earnings season, while others have called it completely unfounded altogether. Regardless of the reason behind the rally, price has ascended far and fast and now trades just a few percentage points from its all-time high, but can the rally continue?

Nasdaq 100 Price Chart: 1 – Hour Time Frame (September 2020 – October 2020)

nasdaq 100 price chart

Well, suggesting weakness in the Nasdaq has seemingly become a fool’s errand as of late, as it continues to press higher time and time again, oftentimes devoid of fundamental catalysts. That said, mean reversion is an ever-present force and it is unlikely the Nasdaq 100 can press higher forever, despite its best efforts.

Starts in:
Live now:
Oct 28
( 15:10 GMT )
Recommended by Peter Hanks
Weekly Stock Market Outlook
Register for webinar
Join now
Webinar has ended

Therefore, while Tuesday’s price action serves as a pause to the recent rally, it begs the question whether the index will continue higher from here, or turn lower and consolidate further. Either way, employing nearby technical levels may provide assistance when looking to trade the volatile index. As it stands, the Fibonacci level around 12,045 may mark a nearby level of support that, if broken, could suggest the Nasdaq is vulnerable to a larger pullback.

Should further selling occur, secondary support may reside around the 11,800 level which was vaulted over during last Friday’s speed run higher. Tertiary support might be provided at 11,570, a level we previously highlighted as resistance.

Equities Forecast
Equities Forecast
Recommended by Peter Hanks
Get Your Free Equities Forecast
Get My Guide

If the pause proves only to be a momentary period of consolidation rather than a larger pullback, overhead resistance is rather sparse. Since the Nasdaq has blown through many prior barriers with ease, I would argue the next major technical level of note to the topside is the index’s all-time high at 12,466. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist 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