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
✖

Featured Trade Nasdaq 100 squeezed up to retest key resistance

Article By: ,  Financial Analyst
April 3, 2019 8:04 AM

Short-term technical outlook on Nasdaq 100/ US Tech 100 Index (Wed 03 Apr)

Key technical elements

  • In today Asian session, the US Tech 100 Index (proxy for the Nasdaq 100 futures) has staged a rally of 0.85% to print a current intraday high of 7551 in the European session. The rally has been reinforced by a Financial Times news report that U.S and China are getting closer to a final trade agreement and an upbeat China Caixin services PMI data for Mar that jumped to 54.4, the fastest rate of increase in 14 months.
  • The Index is now hovering below a key pivotal resistance of 7560 which is defined by the former primary ascending channel support from Jun 2016 low and a Fibonacci expansion cluster.
  • The daily RSI oscillator is now coming close to its overbought region coupled with a bearish divergence signal seen in the shorter-term hourly Stochastic oscillator at its overbought region. These observations suggest an overstretched rally where the Index faces the risk of a minor mean reversion decline at this juncture.
  • The significant near-term supports rest at 7418 and 7385 (the former minor swing high area of 26 Mar 2019, the gapped up seen on Mon, 01 Apr Asian session & the minor ascending trendline from 08 Mar 2019 low).

Key Levels (1 to 3 days)

Pivot (key resistance): 7560

Supports: 7418 & 7385

Next resistances: 77630 & 7700 (all-time high)

Conclusion

If the 7560 key pivotal resistance is not surpassed, the Index may see a minor mean reversion decline to target the near-term supports at 7418 and 7385.

However, a break above 7560 invalidates mean reversion scenario for a further push up towards 77630 (1.00 Fibonacci expansion of the recent up move from 27 Mar 2019 low to 01 Apr 2019 minor high projected from 01 Apr 2019 U.S. session low) and even the current all-time high level of 7700.

 

 

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