NASDAQ 100: Technical Analysis Report 11 March 2021

Mar 11, 2021

Current Trend

 The Nasdaq 100 index continues to correct, trading at 12838.0. The 10-year US Treasury rate was 1.523%, well above the 1.155% shown at the last trading. As expected, the Nasdaq tech index is most affected by bond market growth.

 However, in addition to bond yields, investors are also monitoring the inflation rate, which this week remained at 1.7%, which is the highest level for the year. Earlier, the US Fed Chair, Jerome Powell, said that after the entry into force of the decree on stimulus package in the amount of $ 1.9T, inflation may exceed the 2% threshold for a short time.

 In the corporate segment, General Electric Co. shares decline should be noted. The company’s board of directors recommended that shareholders approve the reverse stock split at a 1:8 ratio, which was received with quite a cold welcome.

 The growth leaders in the index are: Walgreen Boots Alliance Inc. (+4.25%), Lululemon Athletica Inc. (+3.57%), Comcast Corp. (+2.95%), Fox Corp Class A (+2.83%). Among the leaders of the decline are: Lam Research Corp. (–4.56%), NetEase Inc. (–4.50%), Micron Technology Inc. (–4.36%).

 Support And Resistance

 The index quotes continue to be in a corrective downtrend, approaching the resistance line. Technical indicators issued a new local buy signal. Fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram moved to the buy zone.

 Resistance levels: 13000.0, 13350.0.

Support levels: 12710.0, 12300.0.

 Trading Tips

 If the asset continues declining and the price consolidates below 12710.0, short positions can be opened with the target at 12300.0. Stop-loss – 13000.0. Implementation time: 5 days.

 If the asset continues global growth and the price consolidates above 13000.0, long positions will be relevant with target at 13350.0. Stop-loss – 12800.0.


 Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 12710.0

Take Profit: 12300.0

Stop Loss: 13000.0

Key Levels: 12300.0, 12710.0, 13000.0, 13350.0

 Alternative Scenario

 Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 13000.0

Take Profit: 13350.0

Stop Loss: 12800.0

Key Levels: 12300.0, 12710.0, 13000.0, 13350.0