Nasdaq 100 Price Analysis: More Downside Ahead

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Azeez Mustapha

Updated: 13 October 2022

The Nasdaq 100 (NDX) index traded on a mixed tone through Monday and closed higher with 0.4%.

The markets found some relief yesterday following President Trump’s decision to halt the ban on Chinese social media apps WeChat and TikTok. However, traders are monitoring developments on the TikTok-Oracle deal to get clearer insights into the state of the market.

Furthermore, the developing geopolitical crisis in the Taiwan Strait also remains in the eyes of investors in the near-term.

Meanwhile, the Chinese media giant Global Times announced in a recent report that Beijing was considering placing HSBC in its Unreliable Entity List (UEL) following the discovery of its linkage with the embattled Huawei CFO Meng Wanzhou’s case.

In other news, the VIX volatility index has etched lower over the past two weeks, suggesting that the NDX’s recent bearishness might be a healthy correction in the middle of a bull run. However, indicators show that there could be more consolidation in the coming days and weeks.

Moving on, market participants will be looking at the FOMC meeting tomorrow for clues on what the market could do next.

Nasdaq 100 (NDX) Value Forecast — September 22

NDX Major Bias: Bearish

Supply Levels: 11050, 11307, and 11595.

Demand Levels: 10840, 10522, and 10220.

The NDX is currently struggling with the 200 SMA around the 10963 area, where the price currently is. Also, a new downward-facing trendline has emerged, indicating that this bearish spate could last a while longer. The index might have a hard time breaking above the 11050 resistance, which could send it on another bear-run below the 10522 support and closer to the 10220 support.

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