The recent price behavior of the Nasdaq 100 (US Tech 100 mini on FXOpen) has shown some interesting patterns. Initially, there was uncertainty near the resistance level of 18,840, followed by a decline and a test of the former resistance at 18,250. The long lower shadow on the candle indicated aggressive demand, giving the bulls confidence to break through the resistance.
The rally in June was driven by various factors, including the prospects for AI implementation and Fed rate cuts. The price continued to rise within an ascending channel, part of a larger ascending channel. This positive momentum led to the Nasdaq 100 reaching the psychological level of 20,000 points, supported by influential analysts raising their forecasts for US stock markets.
The market sentiment was further boosted by anticipation of comments from FOMC members regarding potential rate cuts. This fueled speculation that the Fed might cut rates as early as September, contributing to the positive outlook for the Nasdaq 100.
Technical analysis of the Nasdaq 100 reveals that the price is currently in the upper half of the blue channel, with potential support at its median line. Additionally, the price is near the upper boundary of the green channel, acting as a potential resistance level. This suggests the possibility of a retracement from the psychological level of 20k towards the lower boundary of the green channel.
Despite the potential resistance at the upper boundary of the green channel, the current bullish drivers may remain relevant until September. This could lead to the Nasdaq 100 continuing its upward trajectory towards the upper boundary of the blue channel.
The Nasdaq 100 has experienced significant growth recently, driven by a combination of factors such as AI implementation, Fed rate cut prospects, and positive market sentiment. While there may be some resistance at certain levels, the overall outlook remains optimistic for the Nasdaq 100 in the near future. It is always important for investors to carefully consider all factors and conduct thorough analysis before making any trading decisions.
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