nasdaq
This week is of extreme importance for the Nasdaq 100 index. Also known as the tech index, it is moving mostly based on the performance of the giant U.S. tech corporations. This week we’ve seen Tesla delivering its Q1 2021 results, but heavy names will release their earnings in the second part of it – Apple, Facebook, Microsoft.
The Nasdaq 100 trades with a bid tone, like all its U.S. peers. It currently sits close to the all-time highs, and one cannot find a bearish argument against this rise. After all, the price action remains in a rising channel and continues to form higher highs and higher lows.
However, a move in the lower half of the rising channel will put pressure on the Nasdaq 100 index. Moreover, a drop below the major support trendline will be even more bearish.
Tomorrow, the Fed in the United States will publish the FOMC Statement and press conference. Judging by how strong the U.S. economic recovery is, the Fed will have a hard time convincing markets that the easy monetary policy needs to remain in place for a long time. Hence, any hint of tapering should weigh on stocks.
The technical perspective looks bullish. Bulls may want to buy any dip and aim for a new higher high, as long as the price action remains in the rising channel. Bears, on the other hand, will want to sell on a break below the channel, with a stop at the opposite side of the channel and target a risk-reward ratio of 1:2.
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