US Tech 100 (Nasdaq 100)
Source: IG Charts
The Nasdaq100 has grinded higher following a bullish price reversal off the 20250-support level. The move higher appears weak compared to the preceding move lower from all-time highs. In turn traders who have been long from the bullish reversal might consider looking to exit long positions.
The weak momentum move higher has taken the shape of a bearish flag formation (highlighted blue). This suggests that we may see a move lower with 20250 and 19635 initial support targets.
The long-term trend for the index does however remain up. As such, trend followers might prefer to wait out weakness (should it ensue), looking for long entry on a bullish price reversal closer to one of the lower labelled levels of support.
Should this scenario manifest, we will update guidance accordingly.
US Tech 100 (Nasdaq 100) - previous
Source: IG Charts
Similarly to the US 500 index, the long-term trend for the US Tech 100 is up, suggesting that trend followers would look to keep a long bias to trades on the index.
Traders might look for a rebound off the 20330-support level for long entry, targeting a move to the high at 21220 as an initial target. In this scenario, a close below the 20330 level might be used as a stop loss consideration.
Should the price not rebound off the 20330 level, and instead close below this level, 19850 becomes the initial support target from the move. In this scenario, traders might prefer to wait weakness out looking for a bullish price reversal close to the 19850 level for long entry. Should this setup manifest, we will update guidance accordingly with targets and failure levels.