Chart of the day - Nasdaq 100 short-term uptrend remains intact

The short-term uptrend of Nasdaq 100 and its recovery process from 09 Feb 2018 U.S. session low remains intact.

Short-term technical outlook on US Tech 100 Index (Wed, 21 Feb)



Key technical elements

  • The slide seen on the US Tech 100 Index (proxy for the Nasdaq 100 futures) from its last Fri, 16 Feb high of 6853 has managed to stall at a significant short-term support of 6717 which is defined by a confluence of elements. The former minor swing high area of 08 Feb 2018, the minor ascending channel support from 09 Feb 2018 U.S. session low (depicted in light green) and close to the 38.2% Fibonacci retracement of the recent up move from 14 Feb 2018 minor swing low to 16 Feb 2018 high (see 1 hour chart)
  • Yesterday’s price action has managed to stage a bullish breakout from a minor bullish continuation “Flag” pattern (depicted in purple). It pull-backed towards the former upper boundary/resistance of the “Flag” now turns pull-back support at 6770 and formed a bullish hourly “Hammer” candlestick pattern (see 1 hour chart).
  • The next significant near-term resistances stands at 6895 (the former minor range support from 25 Jan low to 02 Feb 2018 low) follow by the current all-time high level of 7038.

Key Levels (1 to 3 days)

Intermediate support: 6770

Pivot (key support): 6717

Resistances: 6895 & 7038

Next supports: 6666 (downside trigger) & 6420

Conclusion

The short-term uptrend and recovery process from 09 Feb 2018 U.S. session low remains intact and the slide seen from last Fri, 16 Feb high of 6853 is more likely to be considered a pull-back within the aforementioned uptrend rather than the start of a deeper correction to retest the 09 Feb 2018 major swing low of 6163.

Therefore as long as the 6717 key short-term pivotal support holds, the Index may see another upleg to target the next resistances at 6895 and 7038.

However, failure to hold above 6717 should invalidate the bullish scenario for a slide to retest 15 Feb 2018 U.S. session low of 6666 and a break below it opens up scope for a deeper pull-back towards the next support at 6420 (former minor swing high areas of 09/10 Feb 2018 & the 61.8% Fibonacci retracement of the on-going up move from 09 Feb low to 16 Feb 2018 high).

Charts are from City Index Advantage TraderPro 


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