Nasdaq 100 futures have gapped higher upon the Asia market open, leaving them sitting above the important 200-day moving average. With momentum indicators like RSI (14) and MACD generating bullish signals, it’s an environment that favours buying dips and topside breaks.
However, the coast is not entirely clear for bulls with the price struggling to take out the March 28 high of 20,536. The January 2023 uptrend is also nearby, sitting just above 20,600. Zooming out, the price has also been coiling in a rising wedge pattern, warning there may be an eventual resumption of the bearish trend seen between late February and early April.
While some bulls may be willing to buy above the 200-day moving average with a stop beneath for protection, others may prefer to wait for a decisive push above the top of the resistance zone around 20,650 before establishing positions. Topside levels to keep on the radar include 21,000, 21,420 and 21,969.
If the price were to reverse back below the 200-day moving average and close there, it would swing near-term directional risks lower, invalidating the bullish bias.
Good luck!
DS
However, the coast is not entirely clear for bulls with the price struggling to take out the March 28 high of 20,536. The January 2023 uptrend is also nearby, sitting just above 20,600. Zooming out, the price has also been coiling in a rising wedge pattern, warning there may be an eventual resumption of the bearish trend seen between late February and early April.
While some bulls may be willing to buy above the 200-day moving average with a stop beneath for protection, others may prefer to wait for a decisive push above the top of the resistance zone around 20,650 before establishing positions. Topside levels to keep on the radar include 21,000, 21,420 and 21,969.
If the price were to reverse back below the 200-day moving average and close there, it would swing near-term directional risks lower, invalidating the bullish bias.
Good luck!
DS
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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.