NAS100 Eyes Caution Amid Overextension and Trendline Proximity

NAS100 Analysis – July 27

NAS100 is approaching a cautious phase due to overextension and its proximity to a key trendline. In recent weeks, the index has maintained consistent bullish momentum, forming a series of higher highs and higher lows above the 9-day Simple Moving Average (SMA), which currently stands at $23,120. However, momentum indicators like the Relative Strength Index (RSI), now around 69.94, suggest the asset is entering overbought territory. This confluence near the psychological resistance at $23,500 hints at a possible weakening of bullish pressure. The RSI’s approach to the 70-threshold further indicates a potential bearish correction, especially as price action begins to diverge from its typical trajectory.

NAS100 Key Levels

Resistance Levels: $23,000, $24,050, $25,000
Support Levels: $22,140, $20,360, $18,320

NAS100 Long-Term Trend: Bullish

From a technical standpoint, price is now testing an ascending trendline and hovering slightly above a significant horizontal level at $23,264. A break below this zone could indicate a rejection of bullish momentum and may trigger the start of a corrective phase. Past liquidity gaps (FVG) and the mitigation of an order block near $22,400 further support the likelihood of price revisiting these demand zones for rebalancing.

If the market fails to hold above $23,260, the next key level to watch is the $23,000 mark. The combination of resistance near $23,500, an overbought RSI, and vulnerability at the trendline suggests that NAS100 may be due for a short-term bearish correction. A break below the rising support could open the door for a move toward $22,400, with $22,140 as the immediate downside target. If the correction deepens, price might even retrace into the fair value gap at $21,000 before the overall bullish structure regains strength. Such a pullback would help resolve market inefficiencies and recharge bullish momentum, potentially setting the stage for a more sustainable rally toward the $24,000 region. This scenario offers useful insights for traders relying on forex signals.

NAS100 Short-Term Trend: Bullish

On the 4-hour chart, NAS100 continues to display a bullish structure, forming higher lows along an ascending trendline. Price recently broke structure (BOS) above the $23,290 level, confirming ongoing bullish sentiment. The 9-period SMA at $23,270 supports this upward move, while the RSI at 61.52 indicates there’s still room for more gains. If buying pressure persists above $23,320, the index could aim for the $23,500 resistance zone next.

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