Featured Trade Potential impulsive downleg resumes for Nasdaq 100

Short-term technical outlook on US Tech 100 (Fri, 19 Oct)

Key technical elements

The recent corrective rebound of the US Tech 100 Index (proxy for the Nasdaq 100 futures) from its 6905swing low area of 11 Oct 2018 (also coincides with the primary ascending channel support from Jun 2016 low had reached its key medium-term pivotal resistance zone of 7350/7400.
The aforementioned 7350/7400 key medium-term resistance is defined by the neck resistance of the “Double Top” that has been broken down on 08 Oct 2018 and a Fibonacci retracement/projection cluster.
Yesterday’s (18 Oct) price action of the Index has staged a bearish breakdown from a minor “bearish flag” configuration in place since 11 Oct 2018 low. Momentum remains bearish as the daily RSI oscillator remains below a significant corresponding resistance at the 50 level coupled with the shorter-term 1-hour Stochastic oscillator that is hovering right below an extreme overbought level.
The key short-term resistance to watch will be at 7226 which is defined by the former minor swing low area of 17 Oct 2018 and the minor descending trendline from 17 Oct 2018 high that has capped the recent rebound seen yesterday, 18 Oct.

Key Levels (1 to 3 days)

Pivot (key resistance): 7226

Supports: 7050 & 6905

Next resistance: 7350/400 (key medium-term pivot)

Conclusion

The recent rebound from the 11 Oct 2018 swing low of 6905 has reached a key medium-term pivotal resistance of 7350/400 coupled with the bearish elements (as per highlighted above) that occurred yesterday, 18 Oct, the Index is likely to have started another round of impulsive downleg.

As long as the 7226 short-term pivotal resistance is not surpassed, the Index is at risk of shaping a further push down to retest its near-term supports of 7050 and 6905 in the first step.

On the other hand, a break above 7226 negates the bearish tone for a squeeze up to retest the 7350/7400 key medium-term pivotal resistance.

Charts are from City Index Advantage TraderPro

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.