The Nasdaq 100 (NAS100) shows signs of buyer exhaustion after achieving a new all-time high of 21,232.0. The index is currently undergoing a healthy correction within its broader bullish trend. This pullback positions the market in a discount zone, making it an attractive price level for a potential trend continuation. Despite the retracement, the overall market structure remains firmly bullish.
Since forming a swing low at 17,778.0 in August, the Nasdaq 100 has shown consistent growth with increased transaction volume supporting the uptrend. While the price has recently dipped below the 20-period Moving Average, it remains above the 50-period Moving Average, indicating that bullish momentum is still intact.
After reaching a swing high of 21,232.0, the Stochastic indicator highlighted overbought conditions in the market. This prompted a retracement, with the pullback now touching the 61.8% Fibonacci level. This level is considered a critical support zone, often viewed as an optimal entry point within a bullish structure.
Nasdaq 100 Short-term Trend: Bullish
On the 4-hour timeframe, the Nasdaq 100 has moved below its Moving Averages, confirming a lower timeframe bearish movement consistent with the daily chart’s pullback. A trendline has been extended to provide potential support, bolstering expectations for a bullish continuation. The current setup suggests the possibility of a Break of Structure (BOS) as the price gears up for a move toward new highs.
Traders watching for forex signals may also find this retracement level an appealing opportunity to align their strategies with the ongoing bullish trend.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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