NASDAQ 100 Index Forecast November 20, 2012, Technical Analysis

By FX Empire Analyst - Christopher Lewis
Font Size
Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

The NASDAQ 100 market had an absolutely bullish session on Monday as we climbed above the top of Friday's hammer, and shot straight up to the first spot of resistance. Just under the 2600 level, we have seen a significant bit of clustering, and as such it's not a huge surprise to see that this market stopped at this area.

However, we should mention that the market closed the very top of the daily range, and because of this it looks very likely to continue higher. If we can get above the 2600 area, we do believe the 2640 will be this market next stop. This market has been sold off relentlessly sense the end of September, and as such a rally has been long overdue.

One of the things he you have to keep in mind when you look at the NASDAQ however, is the fact that Apple is such a part of it. Apple rose over 7% during the trading day on Monday, and this of course would heavily skew this index to the upside. Perhaps, we are seeing just a little bit of an exaggeration on the bullishness of this market, but the fact that all risk assets on Monday saw interest does suggest that perhaps we have a little bit more bullishness to contend with.

For us, the 2640 level is crucial, and we believe that 2650 is the "epicenter" of significant resistance. If we can get above the 2700 level, we think this market will have turned around completely. However, this is not our base case, and we think that the market will indeed struggle if it rises to the 2650 vicinity. We would sell any weak candles at that point time.

Although this has been a nice downtrend for quite some time, we are not comfortable selling at this resistance point. Simply put, is a minor one in our opinion. With that being said though, we could see the markets often of a bid during the Tuesday session. If that happens, we are not going to get involved unless we get an obviously very set up again.


NASDAQ 100 Index Forecast November 20, 2012, Technical Analysis

NASDAQ 100 Index Forecast November 20, 2012, Technical Analysis

Want to read more articles like this one?

Get the latest fundamental analysis, technical analyses and the most up-to-date news catered to your interests, everyday.

* Please enter a valid email

Activation link was sent

An activation link has been sent to your E-mail.
You will start getting emails only after activating your account.

Find a Broker
Continue to FX Empire Network