The NAS100 initially dropped nearly 0.6% as the Federal Reserve's official decision was announced. However, so far, the event has not been decisive on the daily chart to establish a clear direction. The central bank chose to keep interest rates at 4.5%, as expected, and in its official statement, it acknowledged that inflation remains somewhat elevated and is still far from the 2% target. As long as this rate pause outlook continues, a sustained high level of 4.5% could continue to hinder overall economic activity and may become a key factor in the bearish bias that emerged in December.
Short-Term Sideways Channel:
At the moment, the market remains within a well-defined sideways range, with a ceiling at 22,000 points and a floor at 21,000 points. The price continues to fluctuate within this range, reflecting a clear lack of trend in recent movements. For now, this range stands as the most significant technical formation, potentially serving as a precursor to a much larger trending move.
Neutrality in Indicators:
Key Levels:
By Julian Pineda, CFA - Market Analyst
Short-Term Sideways Channel:
At the moment, the market remains within a well-defined sideways range, with a ceiling at 22,000 points and a floor at 21,000 points. The price continues to fluctuate within this range, reflecting a clear lack of trend in recent movements. For now, this range stands as the most significant technical formation, potentially serving as a precursor to a much larger trending move.
Neutrality in Indicators:
- The RSI line remains near the neutral 50 level, indicating that there is currently a perfect balance between buying and selling forces in the market.
- The MACD histogram closely resembles the RSI, oscillating near the 0-neutral line, which suggests that the moving averages do not show a clear short-term trend bias.
The neutral stance of both indicators suggests that the Nasdaq may continue moving sideways for now, aligning with the current range-bound market behavior.
Key Levels:
- 22K – The most important resistance, aligning with the top of the sideways channel. A breakout above this level could be decisive, signaling new all-time highs and reviving the long-term bullish trend.
- 21K – A crucial short-term support level, coinciding with the 100-period moving average. Price action near this level could intensify selling pressure, potentially leading to more significant bearish moves.
- 20K – The ultimate support level currently holding the structure. A drop to this level could tilt the balance towards the formation of a fresh downtrend in the short term.
By Julian Pineda, CFA - Market Analyst
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.