Nasdaq 100 (NAS100) Bearish Retracement Phase Draws to a Close

Market Analysis – May 8

In retrospect, the NAS100 index transitioned into a bullish trajectory back in November. This upward momentum was substantiated by the breach of short-term Moving Averages (Periods 30 and 50) and long-term Moving Averages (Periods 100 and 128). Throughout this period, the short-term Moving Averages acted as a steadfast support, guiding the market’s bullish ascent until April, when a notable shift occurred.

Amidst this backdrop, the market sentiment veered towards a short-term bearish trend, evidenced by the price descending below the Moving Averages (Periods 30 and 50).

NAS100 Key Levels:

Demand Levels: 17282.60, 16969.20, 16557.80
Supply Levels: 17864.50, 18465.90, 20000.00

NAS100 Long-Term Trend: Bullish

The bullish stance of the US 100 was upheld by the supportive structure of the Moving Averages, particularly highlighted by the period between December and March, where the Moving Averages (Periods 100, 128) resided below the daily candlesticks. This confluence underscored the bullish sentiment prevailing in both short and long-term scopes.

A pivotal moment ensued when the market established relatively consistent lows around 17865.50, delineating a formidable support zone. However, despite earnest efforts for an upward surge, the market faltered, breaching this support zone. Consequently, the price tumbled below the short-term Moving Averages (Periods 30 and 50), signaling a short-term bearish retracement within the overarching bullish trend. The downturn found respite at 16969.20, where the long-term Moving Average provided a stabilizing force, effectively halting the short-term downward trajectory.

NAS100 Short-Term Trend: Bullish

At present, the market has maneuvered towards the resistance level of 17864.0. Traders are poised to confront this obstacle, pivotal for the resurgence towards the previous high of 18465.0. Notably, both the long-term and short-term Moving Averages continue to offer support for the price, particularly evident within the lower timeframe analysis.

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