Nasdaq 100 Worth Outlook:
Nasdaq 100 Worth Forecast for the Week Forward
Whereas the Nasdaq 100 has lengthy been essentially the most unstable of the three main US indices, it isn’t immune from broader seasonal developments that can provide rise to uninspired value motion. Latest periods have seen the tech-heavy index languish about, buying and selling solely barely increased during the last two weeks. Such value motion furthers the probability of range-bound value motion that open the door to vary buying and selling methods. That stated, volatility may very well be revived by upcoming inflation knowledge and subsequent week’s FOMC assembly.
Nasdaq 100 Worth Chart: Hourly Time Body (April 2021 – June 2021)
Within the meantime, nevertheless, the Nasdaq could proceed to lack conviction and will bounce between technical ranges in consequence. Preliminary resistance resides across the index’s all-time excessive of 14,080 with few limitations past. Help could reside close by on the zone round 13,700 adopted by extra formidable assist from 13,300 to 13,400. Because it stands, the “line within the sand” can probably be discovered alongside the rising channel close to 13,100 that, if assist had been to present, may see losses speed up.
That stated, the bottom the Nasdaq 100 must cowl earlier than 13,100 had been underneath menace is critical and seasonal situations would make such a transfer all of the tougher. With that in thoughts, merchants could bide their time till Thursday’s inflation knowledge launch and subsequent week’s FOMC assembly. Each occasions will provide perception into the principle market themes driving value motion, inflation issues and taper discuss.
Because the Nasdaq 100 searches for its subsequent catalyst, comply with @PeterHanksFX on Twitter for updates and evaluation.
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and comply with Peter on Twitter @PeterHanksFX