NASDAQ100 (NAS100) Reaches the Overbought Region, a Downtrend Is Imminent

Key Resistance Zones: 15000, 15500, 16000
Key Support Zones: 13500, 13000, 12500

NASDAQ 100 (NAS100) Long-term Trend: Bullish
NAS100 has been in an uptrend. The index has reached the high of level 16469 but faces rejection. The price indicators have shown that the index is seriously in the overbought region. It is doubtful if the current bullish momentum will continue. The market is currently declining and it may reach the low of level 15400.

Daily Chart Indicators Reading:
The index is at level 75 of the Relative Strength for period 14. The index has reached the overbought region of the market. Sellers have emerged in the overbought region. Bearish candlesticks are indicating a downward move. The price bars are above the 50-day SMA and the 21-day SMA. However, the downtrend will resume if price breaks below the moving averages.

NASDAQ 100 (NAS100) Medium-term Trend: Bullish
On the 4- hour chart, NAS100 is in a smooth uptrend. The price action has been dominated by small body candlesticks. The index is falling as it approaches the 21-day line SMA. A break below the moving average will accelerate the selling pressure.

4-hour Chart Indicators Reading
The index is above the 80% range of the daily stochastic. Since October 25, the index has been trading in the overbought region. The stochastic bands are sloping below the 80% range of the price indicator. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for NASDAQ 100 (NAS100)
NAS100 is in a strong uptrend but the upward move has reached bullish exhaustion. The Relative Strength Index has reached the high of level 79. This implies that NAS100 may not continue the bullish run. A downward move is imminent.


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