Sep 11, 2020, 10:29:50 AM

Nasdaq 100: general review

Current trend

Nasdaq 100 is correcting moderately upwards, trading at 11300.0.

Index quotes have begun to recover after a significant drop amid global sell-off in technology stocks. However, the recent reporting of a number of components gives hope for an early return to the global uptrend. The day before, Oracle Corporation and Zscaler Inc. reported positively. Zscaler posted revenue of USD 125.89M in Q3 2020, surpassing 110.52M in the prior quarter. Oracle reported profit of USD 9.37B, beating expectations of USD 9.17B.

Index components show controversial performance. Citrix Systems (–4.46%), Netflix (–3.90%), Regeneron (–3.69%) stand out among the leaders in terms of reduction. Among the leaders in growth are Tesla (+1.38%), Align Technology (+1.24%), Moderna (+1.16%).

Support and resistance

At the local interval, the index quotes are corrected to the previous decline, forming a Head and Shoulders reversal pattern; a Second Shoulder remains to be formed to complete the pattern. Technical indicators are still in the state of selling, but are starting to reverse. The histogram of the AO oscillator is approaching the transition level, and the fast EMAs of the Alligator indicator have practically crossed each other.

Resistance levels: 11500.0, 12000.0.

Support levels: 11170.0, 10800.0.

Trading tips

If the fall stops, and the asset reverses and grows, long positions that can be opened if the price overcomes the resistance level at 11500.0 with a possible target of 12000.0 and stop-loss of 11200.0 are relevant.

If the decline continues, and the price consolidates below the local low at 11170.0, short positions can be opened with the target at 10800.0. Stop-loss should be placed above the local resistance at 11400.0.

Implementation time: 7 days and more.