Nasdaq 100 Price Analysis

Wall Street traded on a positive sentiment yesterday, as Nasdaq 100 (NDX) hit a new all-time high around 12760.97 amidst renewed stimulus optimism and the Fed’s dovish stance.

The NDX rose by 83.90 points or +0.66%. Meanwhile, the S&P 500 (SPX) gained 0.18%, while the Dow Jones (DJIA) gained 0.45%.

Risk appetite on Thursday got bolstered following the worse-than-expected US Retail Sales report by the Commerce Department. Furthermore, renewed optimism that a stimulus could get passed before the end of the year gave investors more confidence. Politico reported that Congress was close to approving a $900 billion stimulus deal, which contained direct payments to consumers. However, that package excluded the much-needed aid to shield businesses and state and local governments.

Meanwhile, the Americans are currently living through the deadliest week of the Coronavirus pandemic. The US now has more than 317,000 COVID-19-related deaths and over 17.6 million confirmed cases.

The FDA, after an advisory panel vote yesterday, has finally approved Moderna’s (NASDAQ: MRNA) COVID-19 vaccine for emergency use. This approval will strongly complement the mass distribution of the available vaccines from Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX). That said, Moderna still managed to drop by 6.9% yesterday despite its big week ahead.

The Federal Reserve announced a very dovish monetary stance on Wednesday, as expected. The Fed noted that it was committed to sustaining its current asset purchase program until notable improvements are observed in employment and price stability.

NDX – Hourly Chart

Nasdaq 100 (NDX) Value Forecast — December 18

NDX Major Bias: Bullish

Supply Levels: 12800, 12850, and 12900.

Demand Levels: 12700, 12650, and 12600.

The NDX has reached a new all-time high as the market risk appetite soars. As predicted in a recent analysis, the 12750 area has served as a consolidation area for the tech-heavy index. That said, we could see a slight consolidation or a pullback from this level before proceeding to the 12900 price point. The NDX is currently trading around 12750 and a drop from here will get immediately repelled by the 12645 support.

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