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
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
Bullish
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
Bullish
More View more
Real Time News
  • @JohnKicklighter doesnt/didn’t Zuck personally hunt/kill all the meat he eats/ate? Not a good historical precedent for that goat
  • That's a stretch. Read a story that Mark Zuckerberg named his goat 'Bitcoin' and the coin's traders are treating that as an endorsement...
  • US Dollar Index (DXY) failed last week at important resistance. Burst lower puts it in position to sail towards 2018 lows. Get your $USD market update from @PaulRobinsonFX here:https://t.co/MvfsVis9AA https://t.co/GUpgmeFOdo
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 0.94% Gold: -0.04% Oil - US Crude: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/lcqwW08cch
  • The BOE and the ECB won’t meet again for six weeks. Nevertheless, speculation around what they may do next continues to drive markets. Get your market update from @CVecchioFX here:https://t.co/Nmxg4Vsr5L https://t.co/PewJ6S9oT9
  • Fed's Harker: - The Fed has the tools to deal with rising inflation - Inflation expectations are not unanchored
  • Fed's Harker: -Prior to raising the Fed Funds Rate, the Fed will reduce asset purchases - Before we talk about tapering, let's see how the labor market heals
  • RT @RiskReversal: Check it out, on this week's @macrosetup @GuyAdami is bestowed a new nickname, one which I think has the potential to s…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.43%, while traders in GBP/JPY are at opposite extremes with 68.71%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/7kkHhQN06H
  • Fed's Harker: - April employment data most likely an outlier given underlying fundamental strength - US labor market expected to rebound to pre-pandemic levels by next year
Nasdaq 100 Forecast: New Record High Eyed as Bullish "Head & Shoulders" Pattern Develops

Nasdaq 100 Forecast: New Record High Eyed as Bullish "Head & Shoulders" Pattern Develops

Margaret Yang, CFA, Strategist

Nasdaq 100 index Technical Forecast: Bullish

  • The Nasdaq 100 index has likely entered a minor correction, but the medium-term bull trend remains intact
  • A bullish inverse “Head and Shoulders” chart pattern remains in focus despite a short-term pullback
  • Further development of the “H&S” formation may hint at further price gains with an eye on 14,386

The Nasdaq 100 index entered a brief consolidation period after rallying 11.3% from end-March to mid-April. The index’s rally appears to be taking a pause as profit-taking kicked in, allowing buyers and sellers to change hands. The overall trend remains bullish-biased as suggested by upward-sloped 50- and 100-day SMA lines.

A typical inverse “Head and Shoulders” (“H&S”) pattern was formed during mid-February to early April when the Nasdaq 100 entered a technical correction. This can be a strong bullish trend-reversing indicator and is typically formed when a downtrend is depleted and about to turn around. The benefit of using a H&S setup is that it defines areas to set stop-loss and profit-taking levels.

A general rule of thumb suggests that the low point of the “right shoulder” will specify the stop level whilst the vertical distance between the neckline and the peak of the “head” will approximate the distance to the upside objective – 1,085 points in this case. A completed inverse “Head and Shoulders” may pave the way for the Nasdaq 100 index to challenge 14,386 – a level generated by adding 1,085 points to the neckline. 14,386 is very close to the 161.8% Fibonacci extension level (14,361), where some selling pressure may be found.

Nasdaq 100 Index – Daily Chart

Chart by IG

The index’s 20-day SMA line surged substantially higher above the 50- and 100-day SMA lines, underscoring the need for a short-term correction. An immediate resistance zone can be found between 13,990 (the 127.2% Fibonacci extension) and 14,070 (recent highs). The 20-day SMA line may serve as an immediate support level. A breach below it may lead to further losses with an eye on 13,697 (the 100% Fibonacci extension) for support.

The MACD indicator is trending lower after forming a bearish crossover, suggesting that upward momentum might be fading.

On the weekly basis, the Nasdaq 100 index has returned to its primary uptrend after a brief technical pullback. The trend-defining 10-period SMA line has flipped upward, suggesting that near-term path has turned bullish. A Fibonacci extension points to a key resistance level at 14,285 - the 61.8% mark – if price can hold above the 50% extension (13,598).

Nasdaq 100 Index – Weekly Chart

Chart by IG

--- Written by Margaret Yang, Strategist for DailyFX.com

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

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

DISCLOSURES