NASDAQ 100 Forecast: Continues to Find Buyers on Dips
Alternatively, think this is a situation where you will continue to see a lot of noise in this market and see the need to be very cautious with your position size.
If we break above the 12,800 level, then it’s possible that we could go to the 13,000 level, and then possibly even the 13,200 level. After that, we have the 13,600 level, which was a significant peak for the market. You could also make an argument that we are forming a bit of a bullish flag, so that comes into the picture as well. The bullish flag of course is something that a lot of traders will be paying close attention to as the market likes those patterns. It’s an obvious pattern, and therefore a lot of traders will be sucked into the trade.
Alternatively, think this is a situation where you will continue to see a lot of noise in this market and see the need to be very cautious with your position size. The volatility will more likely than not continue to be a major issue, so with that being said I think that it is probably only a matter of time before we have to make a bigger move.
If we were to turn around and break down below the 200-Day EMA, the 12,000 level comes into the picture as major support from not only a structural standpoint but also the psychology attached to a figure like that. Either way, it looks like everybody is more than willing to ignore higher interest rates and inflation, as we have seen time and time again. All things being equal, the market looks as if we are going to continue to see quite a bit of “buy on the dip” behavior, but anything underneath there, the 12,000 level, could get disastrous.
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