The Nasdaq 100 index, which includes the stocks of 100 major U.S. technology and innovation companies, has recently been influenced by macroeconomic factors and monetary policies. Inflation data releases, Federal Reserve interest rate decisions, and earnings reports from tech giants like Apple, Microsoft, and Nvidia play a significant role in shaping the overall trend of this index.
Inflation and Interest Rates
The gradual decline in U.S. inflation has raised hopes for more accommodative policies from the Federal Reserve, but the market remains cautious.
Corporate Earnings
Positive earnings reports from major tech companies could ease selling pressure and provide support for the index.
Geopolitical Risks
Global geopolitical tensions and supply chain risks may also contribute to volatility in the Nasdaq.
Technical Analysis of the Nasdaq 100
In the 15-minute chart provided for the Nasdaq 100, price action shows clear reactions to supply and demand zones:
Supply Zone (Resistance): The area between 22,780 and 22,820 (red box) has acted as resistance, with price pulling back multiple times after testing this level.
Demand Zone (Support): The area between 22,580 and 22,640 (green box) is considered a strong support level.
Break of Structure (BoS): A structural break has occurred, suggesting a potential shift in market sentiment toward bearishness.
Currently, the price is trading below the supply zone, increasing the likelihood of a move towards the demand zone. If the green support area is broken, a further decline toward lower levels is possible.
Summary
The Nasdaq 100 is at a critical juncture. From a fundamental perspective, upcoming economic data and Federal Reserve decisions will be key drivers. Technically, as long as the 22,580 support holds, a short-term bounce is possible. However, a break below this level may give sellers the upper hand. Investors should consider a combination of fundamental and technical factors in their decision-making.
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