Nas 100 Breaks Resistance Level and Rises Through Bullish Wedge

Market Analysis- May 14

In recent trading sessions, the US100 index has been displaying an impressive uptrend. This has been marked by the index breaking through the resistance level of 13195.0 on April 27, 2023. For approximately eight months, the price has been fluctuating below this key resistance level, but the bulls have shown remarkable persistence, and their efforts have finally been rewarded with a breakthrough. Following the push above the resistance zone, there was a pullback, but this only served to gather sufficient momentum for the index to create a new high.

Nasdaq Key Levels

Demand Levels: 12705.0, 12439.0, 11675.0
Supply Levels: 13195.0, 13729.0, 14274.0

US 100 Long-Term Trend: Bullish

Over the long term, the US100 index has been displaying a bullish trend, although there have been some fluctuations along the way. From February through mid-March, the price experienced a temporary bearish trend, which was marked by a decline in the price. A double-top bearish reversal pattern was used to initiate the temporary sell-off at the significant zone of 12705.0.

After the formation of the bearish chart pattern, the neckline of the double top was broken on the 21st of February when the Williams Percent Range was overbought. This led to the Parabolic SAR (Stop and Reverse) guiding the daily candlesticks to the lower support level of 11645.0.
However, on the 13th of March, the daily candlestick flaunted its shadow to show a rejection at the support level of 11675.0. This led to a resumption of the bullish institutional order flow of price, with the market taking off from the oversold region as the Parabolic SAR (Stop and Reverse) escorted the candlesticks from below.

Nasdaq Short-Term Trend:

In the short term, the market has been ascending to the resistance trendline of the bullish wedge. The Williams Percent Range is currently overbought on the daily chart, which may signal an imminent pullback to the support trendline above 12705.0. This would be anticipated to help regain bullish momentum, and traders are advised to keep a close eye on the market to identify any potential opportunities. Overall, the US100 index has been displaying impressive strength in recent trading sessions, and it is clear that the bulls are in control of the market.

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