- Summary:
- Nasdaq100 attempts a bullish reversal as the stock market benefits from the new fiscal stimulus. A move above the previous lower high is bullish.
The Nasdaq100 index appears to have bottomed recently if we judge by the fact that the market formed an inversed head and shoulders pattern and moved above a major falling trendline. At this point, the only thing that stands in the bulls’ way is the previous lower high – a breakout above that level will open the gates for a new attempt to a new all-time high.
The stock market remains very bid on every dip – normal if we consider the new round of fiscal stimulus and the proportion of it that will end up in the stock market. Also, the vaccination rate in the United States continues at an incredible pace, making it extremely plausible that the economic recovery will be faster and stronger.
Nasdaq100 lags the price action seen in peer indices. For example, Dow Jones made several all-time highs recently. However, it may just be that the Nasdaq100 is just correcting after the impressive run at the highs in 2020.
Nasdaq100 Technical Analysis
The technical perspective looks constructive for the Nasdaq100 index. Bulls may want to buy a breakout above 13,300 and target a new all-time high. For this they need a stop loss at the falling trendline. Should the market fall below the falling trendline, bears are in control again.
Nasdaq100 Price Forecast
