Critical Analysis of the Nasdaq 100 Price Behavior

Critical Analysis of the Nasdaq 100 Price Behavior

The article discusses the uncertainty observed in the price behaviour of the Nasdaq 100 near the resistance level of 18,840. This uncertainty was highlighted by a decline in price following the test of the resistance level and a subsequent test of the former resistance at 18,250. The long lower shadow on the candle indicated aggressive demand, giving the bulls confidence to break through the resistance.

In June, the price continued to rally within the ascending channel, driven by prospects for AI implementation and Fed rate cuts. The article mentions that the price is in the upper half of the blue channel and near the upper boundary of the green channel, suggesting potential support and resistance levels. It is anticipated that the price might retreat from the psychological level of 20k towards the lower boundary of the green channel.

The article also discusses the market sentiment being buoyed by influential analysts raising their forecasts for US stock markets. Goldman Sachs raised the year-end 2024 target for the S&P 500, while Evercore ISI increased its forecast for the same index. This positive sentiment was further supported by the anticipation of comments from FOMC members, confirming the Fed’s intention to cut rates as early as September.

The analysis of the Nasdaq 100 price behavior suggests that the current bullish drivers, including AI implementation and Fed rate cuts, will remain relevant until September. This could potentially allow the Nasdaq 100 to continue rising towards the upper boundary of the blue channel. However, there is also a possibility of a retreat from the psychological level of 20k towards the lower boundary of the green channel.

Overall, it is important for traders to closely monitor key support and resistance levels, as well as market sentiment and analyst forecasts, to make informed trading decisions. It is advisable to conduct thorough research and analysis before making any investment decisions in the global index CFD market.

Technical Analysis

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