Nasdaq 100 Technical Forecast: Watch Support Test in Days Ahead
The Nasdaq 100 is pulling back from a one-year top-side trend-line, which could soon have two forms of support undergoing a test. There is the trend-line from May and the record swing-high from early August.
How price action behaves at that juncture will be critical (assuming it gets touched). A reversal off support or even after a minor breach will be viewed as bullish and could set the NDX up for a run back to new record highs.
In the event support is broken with momentum, then I’ll be watching to see if old support becomes new resistance. In the event support is broken and the market can’t find sponsorship the outlook will turn negative.
For now, though, until we see further evidence to suggest the contrary – the trend and support is to be trusted until broken.
Please see the video above for the full details…
Nasdaq 100 Daily Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.