Nasdaq 100 Price Analysis — December 29

Nasdaq 100 Price Analysis — December 29

Wall Street traded on a bullish tone early on Tuesday, following a significant rally on Monday that sent many indexes to fresh record highs.

The Nasdaq 100 (NDX) grew by about 1.01%, or 127.85 points, recording a new all-time high. The Dow Jones (DJIA) jumped by 0.7%, while the S&P 500 rose by 0.9%.

The sharp gains on Wall Street indexes came following President Trump’s recent approval of a $900 billion coronavirus relief bill. The relief package includes a direct payment of $600 to most Americans. The bill approval is coming a few days after Trump demanded that the initial $600 payment be increased to $2,000 for Americans. The House passed a bill to bulk the direct payments to $2,000, but the GOP-led Senate seems adamant in opposing the increase.

Monday’s bull run has placed the NDX’s 2020 rally at around 43%, as investors rushed large tech stocks like Amazon, Apple, and Facebook. Yesterday’s rally also brought the S&P 500’s 2020 increase at 15.6% and the Dow at 6.5%.

Meanwhile, coronavirus cases in the US continue to surge, casting doubt over the economic recovery in 2021. More than 184,000 new COVID-19 infections are being reported per day in the US, according to John Hopkins University data.

NDX – Hourly Chart

Nasdaq 100 (NDX) Value Forecast — December 29

NDX Major Bias: Bullish

Supply Levels: 12861.9, 12900, and 13000.

Demand Levels: 12793, 12700, and 12650.

The NDX had a very bullish performance yesterday, after surging by more than 1%. The tech-heavy index snapped its previous ATH at 12793.0 and marked a new record high around 12862.0. The index is likely going to continue on this trajectory for the coming weeks as investor risk sentiment rises.

That said, the NDX still has adequate room before entering into overbought territory on our hourly MACD indicator, which means the index could touch 13000.0 in 2021.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.