- Summary:
- The Nasdaq 100 index could struggle to hold on to the 13,000 psychological support after a 3rd day of decline for the week.
Another selloff in tech stocks on Thursday catalyzed the 1.69% drop in the Nasdaq 100 index as at 1630 GMT. A continued rise in US bond yields, as well as profit-taking on several tech stocks, was enough to send the index lower. Data from the US struggled to please on the day, and though jobless claims fell, the numbers are being questioned by some economists.
An interesting piece of news on the day is the proposed direct listing of Coinbase on the Nasdaq. Coinbase has filed to offer a “Class A common stock” with the SEC, on the Nasdaq Global Select Market. This listing will see the company amass a valuation of $100 billion, under the symbol COIN. However, this news was not enough to lift investor sentiment on the Nasdaq 100.
Technical Outlook for Nasdaq 100
Today’s decline came off a rejection and pullback at the 13344.2 resistance, which has served as the resistance to further upside all week. The decline has violated the support at 13135.5, as the Nasdaq 100 seeks to re-establish a further downside push which has so far not materialized. A successful breakdown of this level allows sellers to target 12973.9, with 12769.3 and 12489.7 lining up as potential targets to the south.
On the flip side, failure to break down 13135.5 allows bulls a chance to regain the momentum. This move targets a retest of 13344.2. A move towards 13559.2 follows a successful break of this level, with 13904.2 also lining up as another upside target. Only a break of this current all-time high allows 13928.7 (127.2% Fibonacci extension) to become a potential new target for record-seeking bulls.
Nasdaq 100 Daily Chart
