Nasdaq 100 Forecast: Are New Highs Forward?

Nasdaq 100 Value Outlook:

Nasdaq 100 Forecast: Are New Highs Forward?

The Nasdaq 100 suffered a month of turbulence as rising Treasury yields pressured most of the high-flying know-how shares which have dragged the broader index increased since March 2020. A current pause in Treasury yield positive factors has seen tech shares regain their footing and, additional nonetheless, encouraging financial information throughout the board has bolstered the elemental argument for US fairness publicity.

Whereas yields could proceed to tick increased sooner or later as a byproduct of the appreciable progress the US financial system is anticipated to expertise, the Nasdaq 100 could press increased regardless. Additional nonetheless, current positive factors have seen the tech-heavy index snap the downtrend that started in mid-February and reclaim its 50-day easy shifting common. It may be argued the contraction created a bull flag formation, a buying and selling sample that sometimes precedes a continuation increased.

Nasdaq 100 Value Chart: Every day Time Body (March 2020 – April 2021)

The enhancing technical image and inspiring elementary backdrop align with seasonal tendencies that usually favor fairness energy, making a bullish outlook for the Nasdaq 100. Ought to positive factors proceed, preliminary resistance could reside close to the index’s prior all-time excessive round 13,900. The extent coincidentally intersects a longstanding trendline from the March 2020 lows which had helped information the index increased till it suffered a break beneath in mid-February 2021.

Nasdaq 100 Value Chart: 1 – Hour Time Body (February 2021 – April 2021)

Going ahead, the trendline will seemingly act as resistance till the Nasdaq 100 can retake the extent, which can give pause to the breakout rally loved over the previous couple of periods. If a retracement materializes, early assist seemingly rests alongside the Fibonacci degree at 13,506 with secondary, and maybe extra formidable, assist barely decrease from 13,370 to 13,315.

The world saved the Nasdaq 100 contained all through late February and March and gave rise to indecision in early April earlier than lastly succumbing to bullish strain. With the zone within the rearview, the Nasdaq can look to press increased and should take pleasure in assist from the extent going ahead.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and comply with Peter on Twitter @PeterHanksFX