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NASDAQ 100 Signal: Continues to See Upwards Momentum

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.

In general, I think this is a market that will continue to be noisy as we try to sort out where we are going from an economic stance, and it’s probably worth noting that there are just a handful of stocks out there that throw the NASDAQ 100 around.

  • The NASDAQ 100 has gone back and forth during the course of the trading session on Wednesday as traders have returned from the Independence Day holiday in the United States.
  • Because of this, you can only read so much into the last couple of candlesticks, as only after-hours electronic trading has been going on.
  • At this point, it looks like the 15,250 level is an area of significant resistance barrier, and if we can break above there is a daily close, it would obviously be a very bullish sign.

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Underneath, we have the 50-Day EMA near the 15,000 level, so I think at this point, we do pull back, there will be plenty of buyers willing to get involved at that point. In fact, we have already seen that a bit during the trading session, so with that being said, the market is likely to continue to see more of a “buy on the dip” scenario. The 50-Day EMA is an indicator that has been somewhat important for a while, and therefore think that if we do attack that level, a lot of value hunters will get involved. Underneath there, then you have the 14,600 level, where it has been resistant, and then recently has been supported.

Noise Ahead

All things being equal, this is a market that I think is trying to figure out whether or not we can continue to go higher, and at this point, it’s also going to be a scenario where you try to find value on dips. In fact, it’s not until we break down below the 14,600 level, this is an area where I would anticipate seeing a bit of a transition if we do break down below there. In general, I think this is a market that will continue to be noisy as we try to sort out where we are going from an economic stance, and it’s probably worth noting that there are just a handful of stocks out there that throw the NASDAQ 100 around.

Potential Signal: At this point, it’s obvious that the NASDAQ 100 is trying to take on the 15,250 level. If we can close above there on a daily chart, then I’m willing to get long of this market, with a stop loss at the 15,150 level.

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Christopher Lewis
About 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.
 

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