Technical analysis update: Nasdaq 100 (2nd February 2022)
In our previous update we noted that we had no idea where the market would go next. Since then, several technical indicators turned bullish on the daily time frame. Additionally, selling pressure cooled off and volatility decreased dramatically. The Nasdaq 100 index is down approximately 10% from its all-time high value; and, in our opinion, the current valuation of NQ1! is very attractive from a long-term perspective. However, despite bullish signs in the market we remain somewhat cautious about the current bounce in price. This is mainly due to weekly and monthly time frames still showing bearish signs. Because of that we will continue to observe the market in the following days and we will evaluate the situation as new developments take place.
Illustration 1.01
Picture above shows the daily chart of NQ1!. It also shows fan lines with Line 1 and Line 2 being penetrated to the upside. This is a bullish sign.
Technical analysis - daily time frame
RSI and Stochastic are bullish. MACD points to the upside, however, it remains in the bearish territory. DM+ and DM- show bearish conditions in the market. However, DM- decreases and DM+ increases which can be considered to be a bullish sign. ADX continues to decrease from its peak on 28th January 2022 which suggests that the recent downtrend loses strength.
Technical analysis - weekly time frame
RSI tries to reverse and break its bearish structure. MACD points to the downside which is bearish. Stochastic, DM+ and DM- are bearish too. ADX flattens.
Support and resistance
Closest resistance lies at 15 340.25 USD. Other resistances sit at 16 009.25 USD and 16 659.50 USD. Major resistance is at an all-time high value for NQ1! which equals 16 767.50 USD. Closest psychological support can be found at 15 000 USD. Other important support levels are at 14 639.75 USD and 13 706 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.
Illustration 1.01
Technical analysis - daily time frame
RSI and Stochastic are bullish. MACD points to the upside, however, it remains in the bearish territory. DM+ and DM- show bearish conditions in the market. However, DM- decreases and DM+ increases which can be considered to be a bullish sign. ADX continues to decrease from its peak on 28th January 2022 which suggests that the recent downtrend loses strength.
Technical analysis - weekly time frame
RSI tries to reverse and break its bearish structure. MACD points to the downside which is bearish. Stochastic, DM+ and DM- are bearish too. ADX flattens.
Support and resistance
Closest resistance lies at 15 340.25 USD. Other resistances sit at 16 009.25 USD and 16 659.50 USD. Major resistance is at an all-time high value for NQ1! which equals 16 767.50 USD. Closest psychological support can be found at 15 000 USD. Other important support levels are at 14 639.75 USD and 13 706 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.
