Technical Analytics Report

NASDAQ 100: Fundamental Analysis Report 10 May 2021

Nasdaq 100: Fundamental Analysis Report 10 May 2021

 

Current Trend: the index is showing an uptrend

The Nasdaq 100, one of the leading US indices, rallies, trading at the level of 13677.0. Yesterday, the instrument once again tried to recover relative to the entire market, reaching the level of 13700.0. 

The situation, when the USD Index is declining, and the Nasdaq 100 index is showing growth, is not new. The reason for the dynamics is that the stock index is based on technology companies that are interested in low interest rates since most of them use borrowed capital. Friday’s decline in the US labor market was perceived as a positive signal that interest rates will remain at low levels for some time. 

The second factor supporting the index is the relative calmness in the bond market. The 10-year yield is below 1.600%, trading at 1.595%. Short-term bills are due to go through auctions today, and the yield is expected to be 0.035% for 6-month bonds and 0.015% for 3-month bonds, which is the average and helps to strengthen the index. 

Among the growth leaders, are Match Group Inc. (+4.45%), Ross Stores Inc. (+3.02%), Cintas Corp. (+2.98%), and Marriott International Inc. (+2.88%). Among the leaders in the decline, are Monster Beverage Corp. (–3.97%), JD.com Inc. (–1.15%), and Pinduoduo Inc. (–0.64%).

 Support and Resistance

Index quotes are moving within a global uptrend, approaching the resistance level. Technical indicators keep a buy signal: the swing range of the Alligator EMA is expanding upward, and the AO oscillator histogram is in the buy zone. 

·         Resistance levels: 13780.0, 14070.0.

·         Support levels: 13500.0, 13000.0. 

Trading Tips

After global growth and consolidation above 13780.0, buy positions with the target at 14070.0 are relevant. Stop loss – 13650.0. Implementation period: 5 days. 

After decline or consolidation below the support level of 13500.0, sell positions with the target at 13000.0 are relevant. Stop loss – 13700.0. 

Scenario

Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 13780.0

Take Profit: 14070.0

Stop Loss: 13650.0

Key Levels: 13000.0, 13500.0, 13780.0, 14070.0 

Alternative Scenario

Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 13500.0

Take Profit: 13000.0

Stop Loss: 13700.0

Key Levels: 13000.0, 13500.0, 13780.0, 14070.0


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