The Nasdaq #NDX Futures at the opening of the Asian session opened with a GAP of 41 points, and below the SMA of 21 on the 1H chart. It is likely that this gap will close in the next few hours.
On the daily charts, we note that the Nasdaq has broken the downtrend channel and has been above that channel for three consecutive days, above the 21 SMA and below the strong resistance at 13,500.
Given that this is the first full week of April, it is likely that there will be a correction of the Nasdaq towards the support zone of the 21 SMA on 4H chart, located at 13,160.
This level could give us a good opportunity to buy with targets at 13250 and 13500.
Our short and mid-term outlook will be bullish only if it remains above the 13,000 psychological level, pointing in the medium term to the resistance zone of 13800.
On the other hand, a price below 13,000 could be a continuation of the initial bearish move, finding support at 12,220.
On the contrary, a consolidation and quote below 13,000 could be a continuation of the initial downward movement, finding support at 12,220.
When the markets realize that the price of an asset does not justify its true value, then investors sell in droves, causing a sharp crash, that could happen if the price of the Nasdaq 100 #NDX goes back below 13000.
Support And Resistance Levels For April 05 - 06, 2021
Resistance (1) 13,391
Resistance (2) 13,423
Resistance (3) 13,457
Support (1) 13,291
Support (2) 13,259
Support (3) 13,174
The material has been provided by InstaForex Company - www.instaforex.com