At the beginning of the American session, the Nasdaq 100 technology index, #NDX, is trading above the 21 SMA and within a bullish channel on 4-hour charts.
The chart above shows that the Nasdaq has a bullish potential until the resistance zone of 14,375 where there is the 6/8 of murray and a zone of strong resistance.
Last week, the FED surprised the markets with its announcement to raise the interest rate starting from 2023, which gave the US dollar bullish momentum. But this data did not negatively affect the Nasdaq, we only saw some corrections that did not alter the overall trend.
The outlook will remain bullish as long as the index remains trading within this bullish channel and above the 200 EMA. Some additional support is seen from the 4/8 murray level which sits at 13,750.
The 100 technology stocks are very stable compared to the Dow Jones that last week fell very strongly. Now we can expect a new upward movement for the Nasdaq in the coming days.
Conversely, a breakout and consolidation below 13,950 will signal a correction to the 200 EMA zone located at 13,611 as the short-term target.
Our recommendation is to buy above the 21 SMA, or if the Nasdaq rebounds from the bottom of the bullish channel, targeting 14,375. We can execute sales only if it consolidates below 13,950.
Support and Resistance Levels for June 21 – 22, 2021
Resistance (3) 14,285
Resistance (2) 14,227
Resistance (1) 14,167
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Support (1) 13,976
Support (2) 13,901
Support (3) 13,784
The material has been provided by InstaForex Company - www.instaforex.com