- Summary:
- Buoyed by a lower then expected number of initial jobless claims this week, the Nasdaq 100 is making more progress in its recovery attempts.
The Nasdaq 100 is up by 1.93% at the moment, as this week’s lower-than-expected-rise in the number of unemployed persons filing for the jobless benefits for the first time buoyed investors. The US Initial Jobless Claims figure for this week came in at 5245K, which was lower than the 5350K that markets had predicted. It was also more moderate than the previous number, which was adjusted upwards to 6615K.
The reduction in the US Initial Jobless Claims may be a pointer that the worst may have passed as far as the coronavirus-induced job losses are concerned. This may have lifted sentiment in the US markets and allowed the Nasdaq 100 shrug off some of the earnings misses. Positive showings by Amazon and Netflix on the Nasdaq 100 are also helping to drive gains on the day.
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Technical Outlook for Nasdaq 100
The Nasdaq 100 is now challenging the 8691.0 resistance level and needs two successive daily candles to close above that price level to confirm the price advance beyond that level. If this scenario plays out, this will take the price above the 127.2% Fibonacci extension of the XA wave in the “W” harmonic pattern, thus invalidating the downside move from that point. This price advance would then have the opportunity to target upside price targets at the 141.4% Fibonacci extension price level at 8945.7, with 9092.3 and 9167.4 in the crosshairs of bullish investors.
On the flip side, a retest of 8442.5 could be on the cards if the attempts to achieve a definitive breakout above 8691.0 falters. If 8442.5 fails to provide support, 8160.2 and 8015.5 could lend themselves to this purpose on a resumption of the selloff.