CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Chart of the day Nasdaq 100 eying another potential fresh all time high

Article By: ,  Financial Analyst
July 12, 2018 6:21 AM

Short-term technical outlook on US Tech 100 (Thurs, 12 Jul)



Key technical elements

  • The US Tech 100 Index (proxy for the Nasdaq 100 futures) is the best performing benchmark among the 4 main U.S. stock indices where it has staged a year to date gain of 12.63% as at 11 Jul 2018 U.S. closing session versus the performance of the rest as per recorded in the same YTD period (S&P 500 = 3.39%, Dow Jones Industrial = -0.44%, Russell 2000 = 9.57%).
  • Graphical elements in conjunction with momentum indicators and Elliot Wave/fractal analysis are still constructive on the Nasdaq 100 to shape another potential upleg.
  • Elliot Wave/fractal analysis suggests that the Index is now undergoing a potential intermediate degree bullish impulsive wave 5/ in place since 29 Jun 2018 low of 6935 to end the primary degree impulsive wave (5) of the “melt-up phase” that started in Feb 2016 low of 3888. Thereafter, the Index faces the risk of a multi-month corrective decline in the firs step within a potential multi-year bear market condition to retrace the 9-year cyclical uptrend from Mar 2009 low.
  • The key short-term support rests at 7186 which is defined by the 11 Jul 2018 minor swing low area and the 38.2% Fibonacci retracement of the recent up move from 04 Jul 2018 low to 10 Jul 2018 high of 7316.
  • The hourly Stochastic oscillator still has room for further potential downside before it reaches its oversold region which suggests that the Index may shape a minor pull-back to retest the 7232 intermediate support (the minor ascending channel support from 05 Jul 2018 low & yesterday, 11 Jul U.S. session minor swing low).

Key Levels (1 to 3 days)

Intermediate support: 7232

Pivot (key support): 7186

Resistances: 7330 & 7400

Next support: 7100/7080 (key medium-term pivot)

Conclusion

Therefore as long as the 7186 key short-term pivotal support holds, the Index is likely to shape another potential upleg to retest the current all-time high area of 7330 printed on 21 Jun 2018 before targeting the next resistance at 7400 (psychological & a Fibonacci projection cluster).

On the flipside, failure to hold at 7186 put the bulls on hold for a deeper pull-back to test the 7100/7080 key medium-term pivotal support (the lower boundary of the ascending channel from 04 Apr 2018 low & former swing high area of 27 Jun/03 Jul 2018).

Charts are from City Index Advantage TraderPro



StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024