Trading Signal for NASDAQ 100 #NDX for September 02 - 03, 2021: Buy above 15,640 (6/8)


The Nasdaq 100 technology index, #NDX, is trading above an ascending channel that originated on August 19 at 14,700. This channel has accumulated almost 1,000 points because now the Nasdaq is trading at 15,630 with an upward bias on the 4-hour chart and with a probability of making new all-time highs.

Strong demand for technology stocks and the data from the employment report by the ADP pollster, which turned out to be weaker than expected, is the impulse that the Nasdaq is receiving in these hours despite the fact that the technical indicators are showing a sign of an overbought market.

Technology stocks are giving strong bullish momentum to the Nasdaq 100 Index. For example, Apple Inc. rose 0.4% to its highest close, and Facebook Inc, Inc and Alphabet Inc, which owns Google, advanced between 0.2% and 0.7%.

The main trend is bullish according to the 4-hour chart. So as long as it remains above the 6/8 murray line, it will indicate that the bullish force continues and we can buy above this level with the target at 15,937 level of 7/8 murray.

The main trend will change to the downside if the Nasdaq 100 #NDX consolidates below 6/8 of Murray and below the SMA of 21 located at 15,995. Given that it has accumulated more than 1,000 points in consecutive sessions, it is expected to enter a correction towards the support of 15,312. If the bearish force prevails, it may fall to the 200 EMA located at 15,046 and the psychological level zone.

The volume of purchases is decreasing as shown by the eagle indicator. It is likely that there will be a technical correction in the coming days towards the 15,300 support level. At this point, the uptrend could resume, and it will be a good opportunity to buy.

If this move creates enough downside momentum, it can possibly extend to the 4/8 murray pivot point zone around 15,000. In that area, a technical rebound is expected and buyers can test the solidity of this bottom.

Our outlook will be bullish only if the Nasdaq remains above 15,625. A consolidation below the SMA of 21 will be an opportunity to sell with the targets at 15,312.

The material has been provided by InstaForex Company -