The Nasdaq 100 index recent bullish surge was triggered by a return to an order block at 18,434.0, which led to increased buying pressure, driving the price up to 20,129.0. However, signs of buyer exhaustion are now emerging, as the Williams Percent Range indicates that the index has entered overbought territory.
Despite notable losses in July, the Nasdaq 100 index has made an impressive recovery. A price drop mitigated a bullish order block at 17,537.0, triggering a bullish reversal.
This recovery has led to two significant bullish swings, breaking the market structure twice. As the price approaches the yearly high of 20,771.0, the Williams Percent Range indicates overbought conditions, suggesting that the upward momentum might be slowing down.
Nasdaq 100 Short-Term Trend: Bullish
In the short term, market structure signals a possible shift from the ongoing bullish trend. A recent failure of the bullish order block on the 4-hour chart reflects this change, driven by overbought signals on higher timeframes. A retracement is expected in the near term, but the overall bullish trend may continue after the market consolidates, with the potential for another push toward breaking the year’s high.
Traders can monitor the market for further developments, as forex signals may offer insights into potential opportunities during this phase of consolidation and retracement.
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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