Nasdaq 100 Technical Forecast: Nearing One-Year Channel Support
The Nasdaq 100 has been declining out of a head-and-shoulders pattern that was discussed not long ago, but if support has anything to do with it then it may be a truncated move. Support via the bottom-side of a one-year-long channel is coming up quickly.
How price behaves around a level is more important than the level itself. If we see a volatile reversal or bounce followed by a successful retest, something that indicates a exhaustion in selling then we could post a low that sticks.
We will respect support until broken, but it is possible with seasonality and the newsflow not favorable that we see a break below support outside of the bullish channel. In the event we do, then we could be entered a period of extended weakness.
Again, important to see how price behaves here as an important inflection point nears.
For the full set of details, please see the video above…
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.