Nasdaq 100: The index that will thrive during lower US inflation
Key levels:
R1 – 13171
R2 - 12945
S1 – 12399
S2 – 11230
Analysis:
Nasdaq’s R1 level of 12945 last tested before Apple earnings on 2nd Feb 2023 has eluded the asset. This however might change since Nasdaq has exhibited resilience in the light of SVB fallout and recent US CPI readings, Nasdaq is up close more than 2,000 points from a bottom made in January 2023. Additionally, 2023 might end positive for Nasdaq as US inflation gradually gets tacked, a higher inflation reading over the next months will add pressure for US stocks. Technically, NAS 100 has remained mostly bullish, sharply rejecting most support levels. It is currently attempting a retest of R1 which will open doors for price action to August 2022 level of 13171. A lower PCE data will allow for this to come to fruition, however, it is likely weak bullish momentum will invalidate such a key break of resistance.
R1 – 13171
R2 - 12945
S1 – 12399
S2 – 11230
Analysis:
Nasdaq’s R1 level of 12945 last tested before Apple earnings on 2nd Feb 2023 has eluded the asset. This however might change since Nasdaq has exhibited resilience in the light of SVB fallout and recent US CPI readings, Nasdaq is up close more than 2,000 points from a bottom made in January 2023. Additionally, 2023 might end positive for Nasdaq as US inflation gradually gets tacked, a higher inflation reading over the next months will add pressure for US stocks. Technically, NAS 100 has remained mostly bullish, sharply rejecting most support levels. It is currently attempting a retest of R1 which will open doors for price action to August 2022 level of 13171. A lower PCE data will allow for this to come to fruition, however, it is likely weak bullish momentum will invalidate such a key break of resistance.
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