Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

NASDAQ 100 Forecast: Index Builds Case for Bullish Flag

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Utimately, we need to pay attention to the upside here.

The NASDAQ 100 had a strong move on Monday after initially dipping ever so slightly negative. By doing so, and then attacking the 16,500 level, it looks very much like a market that is trying to build up enough momentum to go higher. Because of this, I do believe that the NASDAQ 100 will more than likely continue to attract a certain amount of attention. For what it is worth, Tesla certainly helped the situation as the stock gained over 10% at one point during the day.

Looking at this chart, you can see that the 50 day EMA is sitting at roughly 16,026, and it looks as if it is starting to arc just a bit higher. Because of this, it should offer a certain amount of support in general as well. Beyond that, we are forming what looks like a bullish flag which could have a measured move as high as 17,700 above. Obviously, that is a longer-term thought, but right now there is nothing on this chart that suggests that it could not happen.

Keep in mind that it is just a handful of stocks that tend to push the NASDAQ 100 higher or lower, so you need to keep an eye on what is going on with Tesla, Microsoft, Alphabet, and handful of other major players. In other words, something like 90 stocks in this index do not really matter much, as it is not an equally weighted situation. Because of this, you should think of this more or less as a growth index, as most of these companies have the idea of growth in common. With that being said, I believe it is probably only a matter of time before we see any dip bought into, because quite frankly everybody is chasing some type of return.

Furthermore, as we have just started the new year, there will be quite a few traders out there looking to add risk to their books for the year, in order to start working on this year’s returns for clients. In other words, a lot of big money is forced into the market at this point in time. Granted, Friday is the jobs number and that will have its say, but ultimately, we need to pay attention to the upside here.

NASDAQ 100 Index

Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Most Visited Forex Broker Reviews