NAS100 Daily: Resistance Zone and Potential Bullish Signals

NAS100 Daily

It is currently trading within a zone that has been notable as resistance since the start of last year, with the price failing in February and March of 2022 and again in June and July this year. A move above this zone could be a very bullish signal and a sign that the tide has turned for the tech space.

Above here, 16,000 and 16,500-16,700 will be interesting as well, having been significant when it peaked back in 2021. But with so much enthusiasm around AI, if interest rate risks and economic fears do subside, there may be a question of whether those levels could be tested earlier than some even recently assumed.

Of course, these things don’t always move so smoothly and there’s been plenty of setbacks in recent years. A break of the blue trend line could suggest the market has become overbought or such as setback has occurred. But right now, enthusiasm only appears to be building and the stochastic may be saying something similar, having produced some higher highs recently. The MACD still looks less convincing.

Craig Erlam

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.