NASDAQ Forecast – NASDAQ 100 Continues to See Buyers On Dips

NASDAQ 100 Technical Analysis

As you can see, the NASDAQ 100 rallied a bit during the trading session on Wednesday in the early hours as the $18,000 level seems to be offering a bit of a support level. With that being the case, I think you continue to see a lot of upward momentum in the NASDAQ 100 going forward.

All things being equal, this is a market that has been in a strong uptrend and despite having a lot of selling during the Tuesday session, it doesn’t seem like that has changed. The 20-day EMA has offered a barrier as well, so it all comes down to simple trend following when trading this market. Remember, the NASDAQ 100 is going to be driven by a handful of stocks, so as long as the so-called Magnificent Seven are doing well, the NASDAQ 100 will also. It’s been the same correlation that we have had for quite some time now.

This is a market that I think given enough time will go to the $20,000 level, but we just don’t have enough momentum to make that happen quickly. This is fine, this is just typical uptrend behavior and if you look at the chart, the trend itself is in a perfect 45 degree angle. Because of this, I look at every dip we got during the Tuesday session as a potential buying opportunity, and it appears that most of the market feels the same way.

Even if we were to break down below the 20-day EMA, it’s possible that the 50-day EMA offers support and most certainly the $16,950 level will be due to the fact that it previously had been such significant resistance. With this, I’m a buyer on dips and I do believe we have further to go as there is literally nothing on this chart that suggests otherwise. Because of this, I think that you continue to see plenty of “buying on the dip” attitude is market going forward.

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