Nasdaq 100 Trades Near its All-Time Highs
JFD Team | Jul 12, 2018 07:30AM ET
Nasdaq 100 traded in a consolidative manner this week, staying between the support of 7180 and its all-time high of around 7335. The index continues to trade within the channel that has been containing the price action since the beginning of April and thus, we would consider the medium-term outlook to be positive.
That said, we would like to see a clear close above 7335 before we get confident on the continuation of the prevailing uptrend. Such a break would confirm a forthcoming higher high on the daily chart and would drive the index to levels never seen before.
Looking at our daily momentum studies, we see that the RSI lies above 50 and is pointing up, while the MACD stands above both its zero and trigger lines. It points north as well. These indicators detect positive speed and support the case for Nasdaq to drift higher in the foreseeable future.
On the downside, a dip back below 7180 is possible to aim for the 7105 support, or the lower end of the aforementioned channel. However, even if this is the case, we would still see a positive picture as the bulls may take advantage of the price’s proximity to the lower bound and shoot again. We would like to see a clear close below that bound and the 7105 barrier before we abandon the bullish case, at least in the near term.
Such break may open the way for the 6980 zone, the break of which may signal the completion of a double top formation and perhaps bring a near-term trend reversal. If this is the case, we would expect the bears to set the stage for our next support zone of 6855.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.