Nasdaq 100 technical analysis shows that a large bullish pattern is still at work on the higher time frames.
The upside projection of the pattern is still far from achieved, and could reward traders that are willing to buy dips in the index.
Nasdaq 100 medium-term price trend
Nasdaq 100 technical analysis shows that the index has recently pulled back from all-time price high, although the downwards shift is likely to be short-lived.
The Nasdaq has recently moved into an uncharted area. The upside advance was guided by bullish market sentiment and a large reversal pattern on the higher time frames.
The daily time frame is showing that the overall upside projection of the bullish inverted head and shoulders pattern could take the index towards the 9,800 level over the medium to long-term.
Technical pullbacks towards the index’s 20-day moving average, around the 8,930 level are possible, following yesterday’s pullback.
However, buying dips is still an attractive option at this stage due to the fact that the 20-day moving average has acted as formidable support and the uptrend is extremely strong.
Nasdaq 100 short-term price trend
Nasdaq 100 technical analysis shows that the index is technically bullish over the short-term while trading above the 9,000 support level.
The four-hour timeframe is showing that bearish MACD divergence is extending down towards the 8,900 level.
With this in mind, short-term traders may look to sell a break under the 9,000 level, in anticipation of the bearish MACD divergence completely unwinding.
The lower time frames also show a rising wedge pattern in play, with trendline support currently coming in around the 9,100 level.
A loss of the 9,100 level should be considered bearish over the short-term and may accelerate losses
Traders should also be mindful that due to the strength of the overall bullish trend a counter rally can start at any time.
Nasdaq 100 technical summary
Nasdaq 100 analysis suggests that the larger upside objective for the index is found around the 9,800 level. A technical correction towards the 8,900 level may be on the horizon.