NAS100 Begins a Bearish Pullback as the Market Becomes Overbought

NAS100 Analysis – June 16

NAS100 begins a bearish pullback as the market becomes overbought. The moving averages (MA Cross 9, 21) are currently positioned at approximately 19,620.0 and 19,140.0, respectively. The price is trading above both moving averages, indicating a bullish trend. The Relative Strength Index (RSI) is at 70.80, which is close to the overbought territory, suggesting potential for a short-term pullback or consolidation before further upward movement.

NAS100 Key Levels
Resistance Levels: $20,089.0, $21,000.0
Support Levels: $18,494.0, $17,750.0
NAS100 Long-Term Trend: Bullish
The price action on the chart indicates a strong upward trend since early June, with the current price around 19,710. This rally has broken through multiple resistance levels, including 19,140 (0.5 Fibonacci retracement level) and 19,365 (0.382 Fibonacci retracement level), before reaching a recent high of 20,090. The bullish momentum seems to have paused, leading to a minor pullback to the current price level. Notably, the price is forming a higher low pattern, indicating that buyers are still in control. The recent formation of an order block (OB) around 19,140 suggests a potential area of strong buying interest, which may act as a support if the price pulls back further.

Based on the current technical setup, the projection in the direction of the arrow indicates a bullish continuation. After a potential pullback to the key support area around 19,140, which coincides with the 0.5 Fibonacci retracement level and the order block, the price is likely to resume its upward trajectory. The next significant resistance level to watch is around 20,090. If the price breaks above this level, the next target would be around 21,000, a psychological level and a previous area of resistance. Overall, the indicators and price action suggest a bullish outlook, with the expectation of higher highs in the coming weeks, provided that the support levels hold. Traders can also enhance their strategies by incorporating crypto signals to navigate these movements effectively.

NAS100 Short-Term Trend: Bearish
On the four-hour chart, the market seems to be experiencing a major pullback to the downside. The bearish pullback began after the price hit the major resistance of $20,089.0.
Also, according to the indication of the RSI (Relative Strength Index), the market needs the ongoing pullback due to its overbought state. NAS100 is expected to resume its bullish trend as soon as it enters the bullish order block at $19,040.0.

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