In the early American session, the Nasdaq 100 technology index, #NDX, is trading within a bullish channel on a 4-hour chart and above the 38 SMA. The bias is bullish bias and the price aims to reach the 6/8 area of murray.
The stock market and the index market are waiting for the announcement that the FED will give in a few hours. There is a probability that the US central bank might signal rate hikes or tapering in bond purchases in view of the spike in inflation. The Fed policymakers begin to see the situation in different ways.
Tech stocks have gained good returns in the face of the pandemic and this has pushed the Nasdaq index to new all-time highs. This rally is likely to continue until it finds resistance in the zone of 14.,75 (6/8 murray).
This correction that we see in the Nasdaq 100 chart could give new upward momentum. However, it is again located above the 5/8 zone of murray around 14,060. Above this zone, we could buy with targets at 14,200 and 14,375.
On the contrary, a technical bounce in the 21 SMA support zone will be a good opportunity to buy with targets in the 14,375 zone in the short term.
The technical reading of the eagle indicator shows that the bullish force still prevails in the market. The index is approaching overbought levels.
Our recommendation is to buy at both levels that we have indicated on the chart, only as long as the Nasdaq remains trading above the 38 SMA, with short-term targets at 6/8 murray.
Support and Resistance Levels for June 16 – 17, 2021
Resistance (3) 14,284
Resistance (2) 14,201
Resistance (1) 14,113
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Support (1) 13,980
Support (2) 13,917
Support (3) 13,790
The material has been provided by InstaForex Company - www.instaforex.com