Over the past few days the Nasdaq 100 Index has been experiencing volatile sessions. Currently, it trades near 14 550 USD price tag. In our opinion, the overall picture for NQ1! is turning less dire with volatility taking a dive today. We are growing increasingly bullish on the Nasdaq 100 index. However, due to quickly changing conditions in the market we continue to be very cautious.
Technical analysis - daily time frame RSI is neutral. MACD remains in the bearish zone, however, it managed to reverse to the upside. Stochastic is bearish. DM+ and DM- are bearish. ADX continues to decline which suggests the selling pressure cooled off substantially over the past few days. Overall, the daily time frame is neutral.
Illustration 1.01 Picture above shows the daily chart of RSI of NQ1!. It also shows two trend lines with the lower one being penetrated to the upside. We will observe RSI in the following days and we will watch whether it manages to break above the upper trend line. This would be the bullish development that could mark the breakdown of bearish structure in RSI.
Technical analysis - weekly time frame RSI and Stochastic are neutral. MACD is bearish. DM+ and DM- are bearish too. ADX continues to move sideways which suggests that the prevailing trend is neither gaining strength, nor losing it. Overall, the weekly time frame is neutral.
Support and resistance Short-term support sits at 14 367.75 USD and short-term resistance lies at 14 585.50 USD. Support 1 sits at 14 367.75 USD. Resistance 1 can be found at 14 807.508 USD and Resistance 2 at 15 708.75 USD. Major resistance lies at 16 767.50 USD.
Please feel free to express your own ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
Trade active
⋅
We are no longer bullish on U.S. indexes. Instead we are turning bearish and expect indices to continue lower as the FOMC approaches closer.
Take full advantage ... I have gone long from 13898 .. i will close 50% at 14030 area ... and leave the rest with a stop loss of last 3 weeks candle at 13650 for any overrun ... just my opinion, I will add if it goes to 13800 and 13700 before if it gets there before the market opens .. but only in those conditions
Tradersweekly
⋅
@csutanto1, I turned bearish towards end of the last week when RSI did not manage to break its bearish structure; and when 14 301 USD support was taken out. Interest rates are due to increase on 16th March 2022 which will only add stress to the market. I think it is very likely that NQ1! will move to new low. Thank you for your comment and good luck with your positions.
zeyankhan1318
⋅
its more likely to move up today 🙏
Tradersweekly
⋅
@zeyankhan1318, Thanks for the comment. Unfortunately, NQ1! drops once again. Overall, the price continues sideways.
csutanto1
⋅
We are technically above 14640 however, i am not sure it has strength although it has broken my 30min bull signals... lets wait and see .. it might extend to around 14670/90 after that might be exhausted
Tradersweekly
⋅
@csutanto1, Thanks for your comments. Lets see what will happen. Rate hikes are coming closer and that poses threat to further rise. Lets see what happens.
csutanto1
⋅
Nicely done -- i am out for 110 points probably go more but i am a day trader ... goodnight
I will add if it goes to 13800 and 13700 before if it gets there before the market opens .. but only in those conditions