Nasdaq 100 - Choppy price action continues

2022年2月10日

Nasdaq 100 index grew approximately 10% since its low on 24th January 2022. At the moment, it experiences choppy price action. However, the situation looks less dire for NQ1! than a week or two weeks ago. The daily time frame continues to show bullish developments while the weekly time frame shows mixed conditions. We are turning increasingly bullish on NQ1! which still trades approximately 10% below its ATH value. We think the current valuation is attractive for entry of a long trade, especially with a long-term perspective.

Technical analysis - daily time frame
RSI is bullish. MACD points to the upside which is bullish, however, it still remains in the bearish area. Stochastic is bullish. DM+ and DM- show bearish conditions in the market. Further, ADX declines which signals weakening of the bearish trend. Overall, the daily time frame is bullish.

Illustration 1.01

Picture above shows the daily chart of RSI of NQ1!. It broke its bearish structure which is bullish.

Technical analysis - weekly time frame
RSI reversed and now it points to bullish direction. Stochastic oscillates in the bearish area, however, it also managed to reverse and now it points to the upside. MACD is bearish. DM+ and DM- are bearish as well. ADX is flat. Overall, the weekly time frame is mixed.

Support and resistance
Short-term resistance lies at 15 260 USD and short-term support at 14 362.75 USD. Resistance 1 appears at 16 009.25 USD while Support 1 sits at 13 706 USD. Major resistance level is at the all time high value which equals 16 767.50 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.