Since the beginning of April, Nasdaq 100 continues to trade within a rising channel. As long as the lower bound of it remains intact, we will aim for the higher levels. Nevertheless, we remain cautious, as a break and a close below the lower side could turn the outlook negative.
As mentioned above, for now, we will aim for higher levels with a possibility of seeing Nasdaq testing and rebounding from the channel’s lower bound and aiming for the 7457 zone, marked by the high of the 15th of August. A break of that zone could set the stage for a test of the 7515 level, which was the all-time high seen on the 25th of July. Even if that level doesn’t stop the price from accelerating further, Nasdaq 100 could enter unchartered territories and aim for new all-time highs.
On the downside, if the lower bound of the channel breaks and the index closes below the 7300 hurdle, this could attract the bears to start jumping into Nasdaq, in order to drive it towards lower levels. This is where the 7155 barrier could come into play. That barrier is marked by the low of the 30th of July, which at the time, also acted as a testing point of the lower bound of the channel, from which the index made its way higher after that. The next potential support area could be seen around the 6970 obstacle, marked by the low of the 2nd of July.
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