Nasdaq (US 100) Forms Double-Top at Supply Level

The Nasdaq uptrend has been put to a halt at the 12795.0 supply level. The buyers are exhausted after pushing through multiple resistance zones.

US 100 Key Levels

Demand Levels: 12071.0, 11311.0, 10665.0
Supply Levels: 12795.0, 13638.0, 14400.0

Nasdaq Long-term Trend: Bearish

Nasdaq bulls have faced stiff resistance from the 12795.0 resistance level. The demand level of 10665.0 was used to foster a bullish reversal on the daily chart. The uptrend finally emerged in January after failing multiple times. The first attempt at a bullish reversal from the 10665.0 demand level in October did not break the bearish trendline. The strength of the bearish pull declined significantly after the first bullish reversal attempt from the demand level. The ADX (Average Directional Index) plunged away from 40 on the indicator phase.

The second attempt was short-lived. The market surged into 12701.0 where the battle between buyers and sellers became intense. This caused the market to consolidate from November to December. The range formed during this period resulted in the formation of a liquidity pool at 12701.0. The Stochastic signified that the market was overbought. Hence, the market declined the last time to 10665.0. At this point, the ADX (Average Directional Index) indicates the bulls have lost the strength to drive the market further.

Nasdaq Short-term Trend: Bearish

The market has emerged from a double-bottom chart pattern after testing 10665.0 for the third time. The price rose to $12795 as a result of the buying pressure. Currently, the market is oversold, as seen on the Stochastic indicator. The market is expected to retrace back to 12701.0

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